A manufacturer of three models of tote bag must determine the production plan for the next quarter.
Question:
A manufacturer of three models of tote bag must determine the production plan for the next quarter. The specifics for each model are shown in the following table.
Model | Revenue ($ per item) | Cutting (hours per item) | Sewing (hours per item) | Packing (hours per item) |
A | $8.75 | .10 | .15 | .20 |
B | $10.50 | .15 | .12 | .20 |
C | $11.50 | .20 | .18 | .20 |
Time available in the three production departments are: Cutting 450 hours, Sewing 550 hours, Packing 450 hours.
Based on market research, the company wants to make at least 300 model A’s, at least 400 model B’s and at least 250 model C’s but no more than 1200 of any one model
Costs in each department are: Cutting $11.00 per hour, Sewing $12.50 per hour, Packing $9.25 per hour
Write the Linear Programming formulation for this problem to help determine the best production mix of the three models that will maximize profit.
For the Linear Programming problem: in addition to writing the formulation, set the problem up and solve it using Excel Solver. Report your solution and the objective result.
Managerial Decision Modeling with Spreadsheets
ISBN: 978-0136115830
3rd edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair