7 Clothco manufactures pants. During each of the next six months they can sell up to the...
Question:
7 Clothco manufactures pants. During each of the next six months they can sell up to the numbers of pants given in Table 51.
Demand that is not met during a month is lost. Thus, for example, Clothco can sell up to 500 pants during month 1.
A pair of pants sells for $40, requires 2 hours of labor, and uses $10 of raw material. At the beginning of month 1, Clothco has 4 workers. A worker can work at making pants up to 200 hours per month, and is paid $2,000 per month
(irrespective of how many hours worked). At the beginning of each month, workers can be hired and fired. It costs $1,500 to hire and $1,000 to fire a worker. A holding cost of $5 per pair of pants is assessed against each month’s ending inventory.
Determine how Clothco can maximize its profit for the next six months. Ignore the fact that during each month the number of hired and fired workers must be an integer.
Step by Step Answer:
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston