Constraints are keeping trusports from making more money

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Reference no: EM131791525

TruSports Apparel manufactures two types of custom men's underware (boxers and briefs) for the Truman bookstore. Briefs use 0.5 yards of material; boxers use 0.4 yards. 300 yards of material are available. Each boxer uses 1 Bulldog insgnia logo. 600 insgnias logos are in stock. It requires 1 minutes of labor to manufacture each pair of boxers and 2 minutes for each pair of briefs. 900 minutes of labor are available. There is unlimited demand for boxers (they can sell all they can make) but total demand for briefs is 375 units per semster. The contribution per boxer is $3.00 and the contribution per brief is $4.50.

Solve using Excel solver, confirming that you get the same answer as in class (i.e., 200 briefs and 500 boxers for a contribution of $2400). Then answer the questions given. You should answer the questions using the sensitivity and answer reports. Do NOT rerun solver except maybe to check your answer. In addition to the answer, state how you arrived at your conclusion (e.g., " The Final Value cell for the Contribution Total in the Answer Report shows that the Revenue is $2400"). If there is a question that you cannot answer using the sensitivity and answer reports, write "Not enough information"

1. Which of the constraints are keeping TruSports from making more money?

2. How much should TruSports be willing to pay for an additional yard of material?

3. Suppose TruSports can use some of the logos in making another item. How many logos could it reallocate to that item without affecting the number of boxers it is currently making?

4. A bolt of material was found to be unacceptable. The bolt contained 40 yards of material. Now that we have 40 less yards of material, how much money would TruSport make? You need to show your work and logic.

Reference no: EM131791525

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