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parexcel1.ST.2008W.2A.L102 - competitive selling price of...

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Product Production Time (Hours) Cutting Sewing Finishing Inspection Standard 7/10 1/ 2 1 1/10 Deluxe 1 5/ 6 2/ 3 1/ 4 Wage Rates per Hour $40.00 $36.00 $24.00 $20.00 Par Golf: Par Golf is a small manufacturer of golf equipment and supplies. Par has been convinced by its distributor that there is an existing market for both a medium priced golf bag, referred to as the standard, and a high priced golf bag , referred to as the deluxe. The distributor is so confident of the market that, if Par can make the bags at a competitive price, the distributor has agreed to purchase all the bags that Par can produce over the next 3 months . A careful analysis of the manufacturing requirements is displayed in the table below. The director of manufacturing estimates that 630 hours of cutting time , 600 hours of sewing time, 708 hours of finishing time and 135 hours of inspection time will be available for the production of golf bags during the next 3 months. The marketing manager has analyzed the market carefully and plans a
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Unformatted text preview: competitive selling price of $82 for the standard bag and $100 for the deluxe bag. The marketing manager is confident that the selling price for the Standard bag will be $82 and $100 for the deluxe bag. Questions: 1. How many bags of each type should we produce? 2. What will be the value of our profit if we produce the quantities determined in Q#1? 3. Are there any departments that are not being fully utilized? 4. How many hours of production time will be scheduled for each operation ? 5. What is the slack time in each operation. 6. Which constraints are binding? Non-binding? 7. Suppose the deluxe bag can sell for $109 instead of $100. How will this affect the and corresponding profit ? How will this affect the optimal solution ? Questions: 1. How many hours should I put in at each stage? 2. How many total hours (C, F, S, I) are needed? 3. How many standard and deluxe bags should we produce? 4. How do we make the most money?...
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parexcel1.ST.2008W.2A.L102 - competitive selling price of...

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