70 355 431 481 6000 10000 13000 6000 7000 14000 16000

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Unformatted text preview: y-cotton blend 1 Ploy-cotton blend 2 6.70 3.55 4.31 4.81 6,000 10,000 13,000 6,000 7,000 14,000 16,000 8,500 0.125 0.08 0.10 0.10 100% silk 100% polyester 50% poly-50% cotton 30% poly-70% cotton 9 Manufacturing Applications Cost and availability of three materials used in production: Available material Material Cost per yard ($) per month (yards) Silk 21 800 Polyester 6 3000 Cotton 9 1600 10 Unit Profit Calculations For each all-silk tie, • Cost per tie = 0.125 yards of silk × $21 per yard = $2.625. • Revenue per tie = $6.70 selling price per silk tie. • Profit per tie = Revenue per tie − Cost per tie = $6.70 − $2.625 = $4.075. Similar profit calculations for the other three products: • Profit per all-polyester tie = $3.07. • Profit per Blend 1 poly-cotton tie = $3.56. • profit per Blend 2 poly-cotton tie = $4.00. 11 Objective Function Objective: Maximize profit menswear ties = $4.08 X1 + $3.07 X2 + $3.56 X3 + $4.00 X4 • Decision variables: X1 = number of all-silk ties produced per month X2 = number of polyester ties X3 = number of Blend 1 poly-cotton ties X4 = number of Blend 2 poly-cotto...
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This note was uploaded on 11/04/2012 for the course IS CB2505 taught by Professor Tommylau during the Spring '12 term at City University of Hong Kong.

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