Rexes tables and chairs is a manufacturer of wooden outdoor furniture. The three main products are picnic tables, benches and party tables. Due to recent increases in demand, the company wants to upgrade its manufacturing process. In order to do so, they must rent the appropriate equipment at a weekly fixed cost of $2000 for picnic tables, $2,500 for benches, and $3500 for party tables.

The labor and material requirements for each product are shown in the following tables, along with the variable cost to manufacture.

The plant capacity for each product is as follows: 3,000 picnic tables, 4,000 benches, and 2,000 party tables.

Rexes has 2,500 labor hours and 8,000 sq ft of lumber available each month to produce the three products.

Write the integer programming formulation to determine the numbers of each product to be produced that would Maximize total profit.

Creative Developments Ltd. (“Creative”) entered into a contract with Towers & Associates, Architects, for the design and preparation of contract documentation necessary to construct a 20-storey office building of unique design. Towers & Associates also agreed to perform inspection services during the construction of the office building. Towers & Associates prepared a conceptual design, and Biggar Inc., an engineering consulting firm, agreed to prepare the detailed structural design for the project. The Biggar firm was retained by Towers & Associates. However, it appeared that the firm’s very busy schedule would not permit its senior design engineer sufficient time to attend to the design personally. Biggar turned the matter over to one of its employee engineers, Hilary Abel, a recent engineering graduate in whom the Biggar firm had great confidence. Abel completed the design and Biggar’s senior design engineer reviewed it. Although not having checked all of Abel’s calculations in detail, Biggar’s senior design engineer concluded that the design appeared satisfactory, and the senior design engineer’s professional engineer’s stamp was affixed to the design drawings. The drawings were submitted to Towers & Associates. Towers & Associates included Biggar’s structural- design drawings in the contract documents for the construction of the project. Creative entered into a construction contract with Sound Construction Ltd. to erect the office building. During the course of construction, the partly finished building collapsed, resulting in considerable damage to Creative’s property. As well, there was a substantial delay in the completion of the office building. Creative conducted an investigation as to the cause of the collapse, and obtained the opinion of another consulting engineering firm. The second firm thought that the structural design, as supplied by the Biggar firm, was inadequate in the circumstances. The investigation also revealed that Towers & Associates had retained Subdata Inc., soils experts, to carry out soils tests, prior to Abel’s preparation of the structural design. Creative subsequently obtained an opinion from another firm specializing in soils tests; the second firm concluded that many more tests should have been performed by Subdata Inc. As well, the second firm thought that the results of the tests performed were “borderline”: the employee of Subdata Inc., who prepared the original report, had very seriously erred in concluding that the test results were satisfactory. The second soils experts also concluded that the subsurface conditions resulted in serious settlement on one side of the building during construction; that settlement contributed to the collapse. Explain the potential liabilities arising from the preceding set of facts in tort law. Discuss, with reasons, a likely outcome of the matter.