Particular type of designer denim jeans

Reference no: EM131699266

Xara Stores in the United States stocks a particular type of designer denim jeans that is manufactured in China and Brazil and imported to the Xara distribution center in the United States. It orders 500 pairs of jeans each month from its two suppliers. The Chinese supplier charges Xara $11 per pair of jeans, and the Brazilian supplier charges $16 per pair (and then Xara marks them up almost 1,000%). Although the jeans from China are less expensive, they also have more defects than those from Brazil. Based on past data, Xara estimates that 7% of the Chinese jeans will be defective compared to only 2% from Brazil, and Xara does not want to import any more than 5% defective items. However, Xara does not want to rely only on a single supplier, so it wants to order at least 20% from each supplier every month.

(a) Formulate a linear programming model for this problem.

(b) Solve the linear programming model for Xara Stores graphically and by using the computer.

(c) If the Chinese supplier were able to reduce its percentage of defective pairs of jeans from 7% to 5%, what would be the effect on the solution?

(d) If Xara Stores decided to minimize its defective items while budgeting $7,000 for purchasing the jeans, what would be the effect on the solution?

Reference no: EM131699266

Questions Cloud

What exactly is the separation of church and state : What are the different ways that religion becomes involved in politics

What is the master budget variance for april : Actual pools sold by Atlas during April were 12 pools at a price of $21390 per pool. What is the Master Budget Variance for April

Marginal cost of supplying water : For a certain small town, the tables shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle.

Which type of power do you find most effective : Which type of power do you find most effective, Which type of power do you think you have. Do you use it. If so, in what situations

Particular type of designer denim jeans : Xara Stores in the United States stocks a particular type of designer denim jeans that is manufactured in China and Brazil and imported to the Xara distribution

Calculate the critical stress and the critical load : Calculate the minimum length L for Euler's formula to be applicable. In addition, calculate the critical stress and the critical load if the length of the bar.

Briefly describe the four phases of a business cycle : Briefly describe the four phases of a Business Cycle. As of the time of this assignment, in which phase of the business cycle does the U.S. economy find itself?

What is the amount of cash that was received : On January 2012, Lower Under Co announced an offer to issue bonds with a $200,000 par value, When the bonds were issued what is amount of cash that was received

Firm in a perfectly competitive market : Suppose a firm in a perfectly competitive market has total costs equal to 4Q2 + 6Q + 13. If this firm is earning zero economic profits, and is producing.

User Account

All Pages