Question
Zara stores in the United States stocks a particular type of designer denim jeans in the United States. It stores 500 pairs of jeans each
Zara stores in the United States stocks a particular type of designer denim jeans in the United States. It stores 500 pairs of jeans each month from its two suppliers. The Hong Kong supplier charges Zara $11 per pair of jeans, and the Colombian supplier charges $16 per pair (and then Zara marks them up almost 1,000%). Although the jeans from Hong Kong are less expensive, they also have more defects than those from Colombia. Based on past data, Zara estimates that 7% of the Hong Kong jeans will be defective compared to only 2% from Colombia and Zara does not want to import any more than 5% defective items. However, Zara does not want to rely on a single supplier, so it wants to order at least 20% from each supplier every month. a. Formulate a linear programming model for this problem. b. Solve the linear programming model graphically. Use either iso-line or corner point method. How many of each should Zara buy? c. How much will Zara pay for them? d. If the Hong Kong supplier were able to reduce its percentage of defective pairs of jeans from 7% to %5, what would be the effect on the solution. Solve c in a separate sheet. First copy the sheet you solved a, b and c. Then change the necessary line and re-solve.
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