A Leather Goods Factory Manufactures Five Styles of Handbags, Whose

question 57

Essay

A leather goods factory manufactures five styles of handbags, whose variable contributions
are $30, $40, $45, $25, and $60 per dozen, respectively. The products must pass through four work centers and the man-hours available in each are: clicking (700), paring (600), stitching (400), and finishing (900). Hourly requirements for each dozen handbags are:
To prevent adding to inventory levels already on hand, the production manager, after reviewing the weekly sales forecasts, has specified that no more than 100, 50, 90, 70, and 30 dozen of each style respectively may be produced. Each handbag is made from five materials as specified in the following table:
Formulate a linear program to determine the production policy that will maximize profits.

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Definitions:

Fraction

A numerical quantity that is not a whole number, represents a part of a whole, typically written with a numerator and a denominator separated by a slash.

Consumers

Individuals or households that use goods and services generated within the economy.

Import Quota

A restriction set by the government on the amount or cost of products allowed to be brought into a country from abroad.

Tariff

A tax imposed by a government on goods and services imported from other countries.