Reference no: EM133543049
1. 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 fabric 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 fabric, and provides a profit contribution of $150. For the coming week, 200 hours of cutting time, 180 hours of sewing time, and 1200 yards of fabric are available.
Additional cutting and sewing time can be obtained by scheduling overtime for these operations. Each hour of overtime for the cutting operation costs an additional $15, and each hour of overtime for the sewing operation costs an additional $10. The additional cost is beyond the regular hourly rates. A maximum of 100 hours of overtime can be scheduled. Also, marketing requirements specify a minimum production of 110 suits and 75 sport coats. a. Formulate an LP model for this problem.
b. Create a spreadsheet model for this problem and solve it using Solver. In so doing, generate the answer report and the sensitivity report. Include them in your report. Use those reports to answer the remaining questions in this problem to the extent possible.
c. What is the optimal number of suits and sport coats to produce? What is the plan for the usage of overtime? What is the total profit? Answer the questions in your report and save all relevant output as worksheets in the Excel file you will submit with your assignment.
d. A price increase for suits is being contemplated that would result in a profit contribution of $210 per suit. If this price increase is undertaken, how will the optimal solution (values of the decision variables) change? What will the net profit become assuming all suits and sport coats that are manufactured can be sold?
e. Because of current high demand for its products, Tucker Inc. decides to place a rush order for 100 yards fabric at the regular price it usually pays for it plus an additional $8 per yard for rush handling in order to use the fabric in the upcoming week's production. Do you think this was a good thing to do and why?
f. Suppose that the minimum production requirement for suits is lowered to 100. Would this change help or hurt total profit and by how much? Explain.
g. Suppose production of a new blazer is being considered. Each blazer requires 1 hour of cutting time, 0.5 hours of sewing time, and 5 yards of fabric. Also, there is currently no minimum production requirement for these blazers. What profit must this product generate in order to make it worthwhile to produce?