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Sagara Shoe Group (SSG) is a well-known shoemaker in Indonesia. SSG makes three varieties of boots: Chelsea, Wingtip, and Desert. These boots are made
Sagara Shoe Group (SSG) is a well-known shoemaker in Indonesia. SSG makes three varieties of boots: Chelsea, Wingtip, and Desert. These boots are made from different combinations of leather and rubber. The cost per meter of genuine leather is $15 and for rubber is $9. SSG can receive up to 2000 meters of leather and 1500 meters of rubber weekly. The table below presents the data concerning the manufacture of the boots. Manufacturing data of the boots Total Style Meters Requirement required 0.5 Boots Chelsea Wingtip Desert 0.6 0.45 At least 50% leather No more than 20% rubber As much as 80% rubber Weekly Contracts 250 325 140 Weekly Demand 300 425 335 Selling Price $56.00 $60.00 $72.00 SSG production managers would like you to formulate a mixed-integer linear program model for this blending problem to obtain the highest profit while meeting the weekly contract (i.e., minimum number of boots to be manufactured) and not exceeding the demand. You do not need to solve the model. (Hint: SSG not only must decide how many boots to make and how much material to purchase, but it also needs to decide how much of leather and rubber are blended into each boot.) (20 Marks)
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