A furniture company produces three products, tables, sofas and chairs. These products are manufactured in five departments.

1. Raw Lumber

2. Fabric Cutting

3. Sanding

4. Staining

5. Assembly

Tables and chairs are produced from raw lumber only, but sofas are produced from raw lumber and fabric. Glue and thread are plentiful and represent a relatively insignificant cost that is included as part of operating expenses.

The specific requirements for each product are as follows.

Resource Or Activity For Table For Sofa For Chair

Lumber (4350 Board Feet) 10 board ft @ Rs 10/ft 7.5 board ft @ Rs 10/ft 4 board ft @ Rs 10/ft

Fabric (2500 yards) None 10 yards @ Rs 17.50/yd None

Saw Lumber (280 hours) 30 minutes 24 minutes 30 minutes

Cut Fabric (140 hours) None 24 minutes None

Sand (280 hours) 30 minutes 6 minutes 30 minutes

Stain (140 hours) 24 minutes 12 minutes 24 minutes

Assembly (700 hours) 60 minutes 90 minutes 30 minutes Direct Labor Expenses are Rs 75,000 per month for the 1540 hours of labor. Based on current demand, the firm can sell 300 tables, 180 sofas and 400 chairs per month. Sales price are Rs 400/ table, Rs 750/ sofa and Rs 240/chair. Assuming that labor costs are fixed and there is no hiring or attrition over the next month, please compute.

1. What are the limiting resources for the furniture company?
2. Determine the product mix to maximize profit. What is the optimal number of tables, sofas and chairs to be produced next month?