H&N stores in the United States stock a particular type of designer denim jeans that is manufactured in India and Bangladesh and imported to the H&N’s distribution center in the United States. It orders 500 pairs of jeans each month from its two suppliers. The Indian supplier charges H&N $11 per pair of jeans and the Bangladesh supplier charges $16 per pair (and then H&N marks them up almost a thousand percent). Although the jeans from India are cheaper, they also have more defects than those from Bangladesh. Based on past data, H&N estimates that 7% of the Indian jeans will be defective, compared to only 2% from Bangladesh, and H&N does not want to import any more than 5% defective items. However, H&N also does not want to rely only on a single supplier, so it wants to order at least 20% from each supplier every month.
a. Formulate and solve a linear programming model for this problem.
b. If the Indian supplier was able to reduce its percentage of defective pairs of jeans from 7% to 5%, what would be the effect on the solution?
c. If H&N decided to minimize its defective items while budgeting $7,000 for purchasing the jeans, what would be the effect on the solution?

  • CreatedApril 10, 2014
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