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Catatonic wishes to develop a model to assist in scheduling production of its soft-sided cat carriers. These items are made of fabric and have
Catatonic wishes to develop a model to assist in scheduling production of its soft-sided cat carriers. These items are made of fabric and have zippered openings to put the cat in the carrier and screened sides to allow the cat to see out. The major labor component is stitching the various pieces of fabric together. Demand for the two most popular models are March 4,000 2,000 Small Medium January 2,000 1,000 February 3,000 1,000 April 5,000 2,000 It takes 6 minutes to stitch a small carrier and 7 minutes to stitch a medium carrier. Catatonic has 500 hours of stitching time available each month. The cost to make one small carrier is $6.00, but this will increase to $6.20 in April. The cost to make a medium carrier is $7.50, increasing to $7.80 in April. Carriers made one month but not shipped until later, cost Catatonic $0.30 per unit per month in storage and handling costs. This cost is the same for both small and medium carriers. Catatonic currently has 200 small and 400 medium carriers in inventory and would like to have 500 of each size in inventory at the end of April. Formulate an LP model that will assist Catatonic in deciding how many of each product to make each month such that total costs are minimized.
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