Tucker Inc. produces high-quality suits and sport coats for men. Each suit requires 1.2 hours of cutting time and 0.7 hours of sewing time, uses 6 yards of material, and provides a profit contribution of $190. Each sport coat requires 0.8 hours of cutting time and 0.6 hours of sewing time, uses 4 yards of material, and provides a profit
S = number of suits produced
SC = number of sport coats produced
D1 = hours of overtime for the cutting operation
D2 = hours of overtime for the sewing operation
The computer solution developed using The Management Scientist is shown in Figure.
THE MANAGEMENT SCIENTIST SOLUTION FOR THE TUCKER INC. PROBLEM
a. What is the optimal solution, and what is the total profit? What is the plan for the use of overtime?
b. A price increase for suits is being considered that would result in a profit contribution of $210 per suit. If this price increase is undertaken, how will the optimal solution change?
c. Discuss the need for additional material during the coming week. If a rush order for material can be placed at the usual price plus an extra $8 per yard for handling, would you recommend the company consider placing a rush order for material? What is the maximum price Tucker would be willing to pay for an additional yard of material? How many additional yards of material should Tucker consider ordering?
d. Suppose the minimum production requirement for suits is lowered to 75. Would this change help or hurt profit?Explain.
This problem has been solved!
Quantitative Methods for Business
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam