Directions: In this assignment we will use Excel's Solver add-in to solve several linear programming
problem. You are responsible for setting up all objectives and constraints in the space provided on this
sheet, and then using Solver to obtain the optimal solution. Submit your Excel sheets to Moodle to provide
supporting evidence.
1. Boise Lumber has decided to enter the prefabricated housing business. It plans to offer three models:
standard, deluxe, and luxury. Each house is prefabricated and partially assembled in the factory,
and the final assembly is completed on site. The dollar amount of building material required, the
amount of labor required in the factory, the amount of on-site labor required, and the profit per unit
are as follows:
Standard Deluxe Luxury
Material $6000 $8000 $10000
Factory Labor 240 220 200
On-site Labor 180 210 300
Profit $3400 $4000 $5000
For the first year's production, a sum of $8 200 000 is budgeted for building materials. The number
of labor-hours available for work in the factory is not to exceed 218000 hours, and the amount of
labor for on-site work can be no more than 237000 hours. Determine how many of each type of
house Boise should produce to maximize its profit from this new venture.
