Limits and Sensitivity

Your company manufactures two types of baseball mitts, Fielder and Catcher.

The Fielder gloves generate $5 profit, and the Catcher gloves generate $8 profit.Production times (in minutes) of each glove type are shown below, based on data you have collected from your assembly line.

	Cutting and Sewing	Finishing	Packaging and shipping
Fielder	60	30	12.5
Catcher	90	20	15

Over the next month, you estimate you have 900 hours of cutting and sewing time available, 300 hours of finishing time, and 100 hours of packaging and shipping time available.

1. How many of each glove type should you manufacture over the next month in order to maximize profit? What is the amount of profit?

2. What profit amounts can Fielder gloves assume without your business decision changing? What business decision would you make outside of this range (on both ends)?

3. What profit amounts can Catcher gloves assume without your business decision changing? What business decision would you make outside of this range (on both ends)?

4. What business decision would you make if the profit on Fielder gloves increased to $8 and the profit on Catcher gloves decreased to $5?

5. What are the values (per hour) of your three labor commodities (Cutting & Sewing, Finishing, and Packaging and Shipping) at your current solution? What is the minimum amount of each of these you would purchase (individually)? What is the maximum additional amount you would purchase of each commodity individually, and how much would you pay for each increase?

6. A luggage maker offers to buy some of your labor to help him crash during the holiday season. He would like 50 hours of cutting and sewing, 10 hours of finishing, and 20 hours of packaging and shipping. What is the minimum amount you would charge to contract out your labor force to meet his requirements?

7. What is the cost to you (per glove) of requiring that you manufacture fielder gloves at this point?

This well need to be setup in solver and us the sensitivity report