SwarthyIndustries.solution-1 - Swarthy Snow Industries...

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Swarthy Snow Industries Swarthy Snow Industries (SSI) makes three models of regionally famous snowboards. The “Swarthy Uno-S1”, the “Swarthy Deux-S2”, and the “Swarthy Mini-S3”. The products are priced at $700, $1,500, and $400 respectively. For the most part SSI has been able to sell all of the snowboards they make because of their reputation for quality (this is due to the highly skilled snowboard artisans they hire from Whistler BC to assemble their snowboards). SSI has not worried about production planning too much. The S1 is its “middle of the road” model and has been quite popular, so SSI has tended to make more of those than the other two models. Also, it takes fewer labour hours to manufacture than the S2, so they are able to make more S1’s with fewer workers. Despite the popularity of its products, SSI is not as profitable as it’s founder, Joe Proe, would like. Joe thinks he may have to shut down SSI if he can’t improve its profitability. His problems just seem to keep mounting: SSI has just about exhausted the supply of qualified snowboard artisans available to build snowboards and none of his workers will work extra hours because they enjoy their free time partying and snowboarding too much. Joe thinks that labour will be limited to about #55,000 hours next year. Furthermore, a secret component of their snowboards – a special cut of pine-beetle infested fir, is only available in limited quantities (up to #10,000 board-metres). And finally, SSI may be hitting the limit of how many snowboards they can sell. Despite Joe’s best efforts, he’s only been able to find one distributor for SSI’s snowboards. They have advised him that they can only sell about 3,000 S1’s, 800 S2’s and 1,500 S3’s next year. Joe has provided the following information: Year Production Labour Hours S1 S2 S3 Total 1 897 466 776 2,139 24,392 2 1,296 512 828 2,636 29,953 3 1,365 550 913 2,828 31,974 4 1,377 582 978 2,937 33,129 5 1,682 622 1,037 3,341 37,516 6 1,793 648 1,055 3,496 39,378 7 1,907 633 1,091 3,631 40,318 8 2,233 670 1,189 4,092 45,062 9 2,369 735 1,307 4,411 48,544 10 2,503 776 1,493 4,772 51,985 Wood costs $25 per metre. Labour costs $40/hour. Unfortunately, Joe doesn’t know how many hours are used to build each type of snowboard, just the totals for each year of production. Joe leases a shop for $500,000 per year for SSI’s snowboard production.
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  • Winter '08
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  • Constraint, S6, Constraint satisfaction

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