Use the Table Below to Answer the Following Question(s)

question 57

Multiple Choice

Use the table below to answer the following question(s) .
Remington Textiles has a mill that produces three types of fabrics on a make-to-order basis.The mill operates on a 24/7 basis.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 demands for the three fabrics and not exceed the capacity of the looms in the mill.Two types of looms are used: Jaquard and Northrop.Jaquard looms can be used to make all fabrics and are the only looms that can weave certain fabrics, such as plaids.Demands, variable costs for each fabric, and production rates on the looms are given in the table below.The mill has 10 Northrop looms and 2 Jaquard looms.Any fabrics that cannot be woven in the mill because of limited capacity will be purchased from an external supplier, finished at the mill, and sold at the selling price.In addition to determining which looms to use to process the fabrics, the manager also needs to determine which fabrics to buy externally.

Answer the following questions using a linear optimization model.
-From the Sensitivity Report, what amount (cost/hour) would make it feasible to purchase Fabric 2 rather than produce it?

• A)$0.6
• B)$0.25
• C)$0.128
• D)$1.1

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Definitions:

Chocolate

A sweet, typically brown food preparation of roasted and ground cacao seeds, often flavored, and consumed as candy or used as flavoring.

Butterscotch

A type of confectionery made primarily of brown sugar and butter, often used as a flavoring in desserts.

Retirement Career

A job or profession undertaken after retiring from one's principal career, often with less working hours and responsibilities.

Age At Retirement

The age at which an individual stops full-time work and begins to draw retirement benefits.