Par, Inc. is a small manufacturer of golf equipment and supplies. Par’s distributor has agreed to buy all the golf bags Par produces over the next 3 months. Their production information is summarized as follows:

Department	Standard bag	Deluxe Bag
Cutting & Dyeing	7/10	1
Sewing	½	5/6
Finishing	1	2/3
Inspection & Packaging	1/10	1/4

Par’s production is constrained by a limited number of hours available in each department. The director of manufacturing estimates that 630 hours for cutting and dyeing, 300 hours for sewing, 708 hours for finishing, and 270 hours for inspection and packaging will be available for the production of golf bags during the next 3 months.

The accounting department arrived at prices for both bags that will result in a profit of $20 for every standard bag and $39 for every deluxe bag produced.

Answer these questions from your Answer and Sensitivity report.

1. Will your finding hold if the profit per deluxe bag decreases by $8?

2. Will your finding hold if the profit per standard bag increases by $8?

3. Is cutting and dyeing a binding constraint?

4. How much you can increase the profit if you can increase the Sewing time by an hour?

5. If you can increase the available finalizing hours to 800 hours, do you need to change your production plan?

Answer rating: 100% (QA)

The Answer and Sensitivity reports of this problem are attached below The decision variables shown in cells B2C2 are the number of units of each bag p... View the full answer