You are working in a furniture factory that manufactures bed

You are working in a furniture factory that manufactures beds, chairs and sofas. Each bed will make $400 in profit, each chair will make $600 in profit, and each sofa will make $900 in profit. Each bed takes 1 hour to assemble, 1 hour to paint, and 1 hour to upholster. Each chair takes 1 hour to assemble, 2 hours to paint, and 3 hours to upholster. Each sofa takes 1 hour to paint, 3 hours to assemble, and 4 hours to upholster. Your assembler can work up to 18 hours per week, painter can work up to 36 hours per week, and your upholster can work up 48 hours a week. Use the SImplex Algorithm to determine how you should maximize your weekly profits.

Solution

1) They last for around a decade. The per-day use price is very low.

2) It\'s one of the highest profit margins in the furniture industry.

3) It\'s impossible to comparison shop. The manufacturer\'s can, and often do, \"label\" the exact same bed with a different cover and name for two stores in the same market area.

4) The used market is practically non-existent. It\'s like selling your used underwear. Nobody wants your filth. So everyone buys new every time.

5) There are only a handful of suppliers for the basic ingredients for a mattress. Legget & Platt, for example, supply almost all the metal involved for the approximately 1,000 U.S. mattress companies. Latex is made by two major companies.

6) Consumers buy when they need, not when they want. This makes a mattress set more of a last minute purchase, than say a car.

7) There are limited sources online to understand the build of a mattress. Therefore consumers have no idea what they are sleeping on. Most people could not imagine a visual of what it would look like if they sliced their bed open.

Source: I owned a 6,000 sq. ft. mattress store for several years.

Edit: Well, this blew up. Thanks for the Gold! I\'ve tried to answer as many of you as I could. I guess I need to do the \"Mattress Guy AMA\" you all requested. Keep an eye out for it soon.