1. Leatherco is contracted to manufacture batches of pants, vests. and jackets. Each product requires a special...
Question:
1. Leatherco is contracted to manufacture batches of pants, vests. and jackets. Each product requires a special setup of the machines needed in the manufacturing processes. The following table provides the pertinent data regarding the use of raw material (leather) and labor time together with cost and revenue estimates. Current supply of leather is estimated at 3000 ft2 and available labor time is limited to 2500 hours.
Pants Vests Jackets Leather material per unit (ft2) 5 3 8 Labor time per unit (hrs) 4 3 5 Production cost per unit ($) 30 20 80 Equipment setup cost per batch ($) 100 80 150 Price per unit ($) 60 40 120 Minimum number of units needed 100 150 200 Determine the optimum number of units that Leatherco must manufacture of each product.
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