Remington Textiles has a mill that produces three types of fabrics on a make-to-order basis. The mill
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Remington Textiles has a mill that produces three types of fabrics on a make-to-order basis. The mill operates 24 hours a day, 7 days a week. The key decision facing the plant manager is about the type of loom needed to process each fabric during the coming 12 weeks to meet demand for the three fabric types and not exceed the capacity of the two machines (Jaquard and Northrop). Jacquard can produce all fabric types and the only one that can make Fabric Type 1. Any fabrics that cannot be woven in house, will be outsourced for a price. The table below shows the data.
| Fabric | Demand | Jaquard (yards/hour) | Northrop (yards/hour) | In-House Cost ($/yard) | Outsourcing Cost ($/yard) |
| 1 | 50,000 | 5.0 | 0 | 0.53 | 0.81 |
| 2 | 62,000 | 5.2 | 4.8 | 0.6 | 0.85 |
| 3 | 35,000 | 4.8 | 4.5 | 0.71 | 0.84 |
Let us suppose the textile company operates optimally, what is the cost they incur to meet demand?
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