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Bob makes blouses and he's good at it . Bob would rather make profit and be good at that. With that in mind, Bob wants
Bob makes blouses and he's good at it Bob would rather make profit and be good at that. With that in mind, Bob wants you to find the best use of his available resources in order to maximize his profits. Material requirements, additional labor costs, and selling prices for each inventory item are included in the table to the right. Additional considerations are listed below.
Bob has a the following resources available to him: Wool, Acetate, Cashmere, Silk, Rayon, Velvet, Cotton. Extra material can be saved and used in future months at no additional cost.
Bob also has some ideas regarding demand and knows he wants to produce subject to the following constraints.
At least:
Itchy Pants
Wool Blazers
Tailored Skirts
No more than:
Velvet Pants
Velvet Vests
Cashmere Sweaters
Silk Shirts
Silk Skirts
Your profit calculations should consider $ in fixed expenses. Develop a spreadsheet model and solve for the optimal solution to maximize profit. Then adjust and use your model to answer the questions on the next sheet.
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