An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 32

Tucker Inc. produces high-quality suits and sport coats for men. Each suit requires 1.2 hours of cutting time and 0.7 hours of sewing time, uses 6 yards of material, and provides a profit contribution of $190. Each sport coat requires 0.8 hours of cutting time and 0 6 hours of sewing time, uses 4 yards of material, and provides a profit contribution of $ 150 For the coming week, 200 hours of cutting time, 180 hours of sewing time, and 1200 yards of fabric are available. Additional cutting and sewing time can be obtained by scheduling overtime for these operations. Each hour of overtime for the cutting operation increases the hourly cost by $15, and each hour of overtime for the sewing operation increases the hourly cost by $10. A maximum of 100 hours of overtime can be scheduled. Marketing requirements specify a minimum production of 100 suits and 75 sport coats. Let
The computer solution is shown in Figure 3.19.
a. What is the optimal solution, and what is the total profit? What is the plan for the use of overtime?
b. A price increase for suits is being considered that would result in a profit contribution of $210 per suit. If this price increase is undertaken, how will the optimal solution change?
c. Discuss the need for additional material during the coming week. If a rush order for material can be placed at the usual price plus an extra $8 per yard for handling, would you recommend the company consider placing a rush order for material? What is the maximum price Tucker would be willing to pay for an additional yard of material? How many additional yards of material should Tucker consider ordering?
d. Suppose the maximum production requirement for suits is lowered to 75. Would this change help or hurt profit? Explain.
FIGURE 3.19 THE SOLUTION FOR THE TUCKER INC. PROBLEM