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Camm Textiles Camm Textiles has a mill that produces three types of fabrics on a make-to-order basis. The mill operates on a 24/7 basis.
Camm Textiles Camm Textiles has a mill that produces three types of fabrics on a make-to-order basis. The mill operates on a 24/7 basis. The key decision facing the plant manager is about the type of loom needed to process each fabric during the coming quarter (13 weeks) to meet demands for the three fabrics and not exceed the capacity of the looms in the mill. Two types of looms are used: dobbie and regular. Dobbie looms can be used to make all fabrics and are the only looms that can weave certain fabrics, such as plaids. Demands, variable costs for each fabric, and the product rates on the looms are given in the following table. Demand Fabric (yards) Dobbie Loom Capacity (yards/hour) Regular Loom Capacity (yards/hour) Mill Cost (S/yard) Outsourcing Cost ($/yard) 123 45,000 4.7 0.0 $0.65 $0.85 76,500 5.2 5.2 $0.61 $0.75 10,000 4.4 4.4 $0.50 $0.65 The mill has 15 regular looms and 3 dobbie looms. After weaving, fabrics are sent to the finishing department and then sold. Any fabrics that cannot be woven in the mill because of limited capacity will be purchased from an external supplier, finished at the mill, and sold at the selling price. In addition to determining which looms to use to process the fabrics, the manager also needs to determine which fabrics to buy externally. Formulate an optimization model which minimizes the product costs.
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