Blue Inc. has some flexibility to move manufacturing effort between shirts and pants production, with the current procedures enforcing limits on the maximum and minimum quantity of each product that can be created. 

 

Known constraints are provided below: 

• Machine hours available (total): Minimum 39,000 hours - Maximum 40,000 hours.
   
• The quantity of shirts that can be manufactured: Minimum 30,000 shirts to Maximum 60,000 shirts.
   
• The quantity of pants that can be manufactured: Minimum 20,000 pairs of pants to Maximum 40,000 pairs of pants.
   

For every machine hour, the labour cost associated with this is $6.00 per machine hour. Other 

 Required:

You must solve thedecisions using linear programming, and include your models in excel. Make sure to state your conclusion.

Transcribed Image Text:

Per shirt Per pant Manufacturing Cost 0.5hours 0.3 hours Material Cost $2 $1.25 Blue Inc. believes it can sell each shirt for $14.00 and each pair of pants for $11.00. Moreover, the firm believes that cost of material and labour costs will be relatively consistent in future periods. The corporate tax rate is 28%. Blue Inc. wants to determine the ideal number of shirts and pants to manufacture that will maximize the facility's net profit after taxes. Per shirt Per pant Manufacturing Cost 0.5hours 0.3 hours Material Cost $2 $1.25 Blue Inc. believes it can sell each shirt for $14.00 and each pair of pants for $11.00. Moreover, the firm believes that cost of material and labour costs will be relatively consistent in future periods. The corporate tax rate is 28%. Blue Inc. wants to determine the ideal number of shirts and pants to manufacture that will maximize the facility's net profit after taxes.

Answer rating: 100% (QA)

To determine the ideal number of shirts and pants to manufacture that will maximize the facilitys net profit after taxes we can use linear programming ... View the full answer