The linear programme for this problem is: Max 10x1 9x2 s:t: 0:7x1 1x2 630 Cutting and dyeing time 0:5x1 0:8333x2

The linear programme for this problem is: Max 10x1 þ 9x2 s:t: 0:7x1 þ 1x2  630 Cutting and dyeing time 0:5x1 þ 0:8333x2  600 Sewing time 1x1 þ 0:6667x2  708 Finishing time 0:1x1 þ 0:25x2  135 Inspection and packaging time x1; x2  0 where: x1 ¼ number of standard bags produced x2 ¼ number of deluxe bags produced The final simplex tableau is:

c. If the profit contribution per deluxe bag drops to 7 per unit, how will the optimal solution be affected?

d. What unit profit contribution would be necessary for the deluxe bag before the company would consider changing its current production plan?

e. If the profit contribution of the deluxe bags can be increased to 15 per unit, what is the optimal production plan? State what you think will happen before you compute the new optimal solution.