Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A textile company produces shirts and pants. Each shirt requires two square yards of cloth, and each pair of pants requires three square yards of
A textile company produces shirts and pants. Each shirt requires two square yards of cloth, and each pair of pants requires three square yards of cloth. During the next two months the following demands for shirts and pants must be met (on time): month 1, 1,500 shirts and 1,000 pairs of pants; month 2, 1,400 shirts and 1,200 pairs of pants. During each month the following resources are available: month 1, 9,000 square yards of cloth; month 2, 6,000 square yards of cloth. In addition, cloth that is available during month 1 and is not used can be used during month 2. During each month it costs $8 to produce an article of clothing with regular-time labor and $16 with overtime labor. During each month a total of at most 2,500 articles of clothing can be produced with regular-time labor, and an unlimited number of articles of clothing can be produced with overtime labor. At the end of each month, a holding cost of $3 per article of clothing is incurred. a. Determine how to meet demands for the next two months (on time) at minimum cost. Assume that 100 shirts and 200 pairs of pants are already in inventory at the beginning of month 1. If your answer is zero, enter "0". Regular time production Overtime production Month 1 Month 2 Month 1 Month 2 Shirts produced 1600 0 1400 K10 0 K9 0 K9 Pants produced 1000 0 1200 0 0 \\'9 0 w $ Total cost: 38700 K20 b. Use a twoway SolverTable to investigate the effect on total cost of two simultaneous changes. The first change is to allow the ratio of overtime to regulartime production cost (currently $16/$8 = 2) to decrease from 20% to 80% in increments of 20%, while keeping the regular time cost at $8. The second change is to allow the production capacity each month (currently 2,500) to decrease by 10% to 50% in increments of 10%. The idea here is that less regular-time capacity is available, but overtime becomes relatively cheaper. Is the net effect on total cost positive or negative? For low ratios of overtime to regular time production cost, as production capacity decreases, cost M. For high ratios of overtime to regular time production cost, as production capacity decreases, cost K9. As the ratio of overtime to regular time production cost increases, cost \\'9
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started