+1-415-670-9189
info@expertsmind.com
Formulate and solve a linear programming model
Course:- Finance Basics
Reference No.:- EM1349747




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

Comfortable Hands is a company that features a product line of winter gloves for the entire family â?" men, women, and children. They are trying to decide what mix of these three types of gloves to produce.

Comfortable Hand's manufacturing labor force is unionized. Each full-time employee works a 40-hour week. In addition, by union contract, the number of full time employees can never drop below 20. Nonunion, part-time workers also can be hired with the following union imposed restrictions: (1) each part-time worker works 20 hours per week and (2) there must be at least two full time employees for each part-time employee.

All three types of gloves are made out of the same 100 percent genuine cowhide leather. Comfortable Hands has a long-term contract with a supplier of the leather and receives a 5,000 square foot shipment of the material each week. The material requirements and labor requirements, along with the gross profit per glove sold (not considering labor costs), are given in the following table:

Glove Material Required (square ft) Labor Required (minutes) Gross Profit (per pair)
Men's 2 30 $8
Women's 1.5 45 $10
Children's 1 40 $6

Each full-time employee earns $13 per hour, while each part-time employee earns $10 per hour. Management wishes to know what mix of each of the three types of gloves to produce per week, as well as how many full-time and part-time workers to employ. They would like to maximize their net profit -- their gross profit from sales minus their labor costs.

a) Formulate and solve a linear programming model for this problem on a spreadsheet using Solver.

 




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
A newly formed firm must decide on a plant location. There are two alternatives under consideration. Using the above information, determine which location would produce the gr
1. The ABC Co. has $1,000 face value bond outstanding with a market price of $937.6. The bond pays interest annually, matures in 9 years, and has a yield to maturity of 1
You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $42.50; g = 7.00% (constant); and F = 5.00%.
The profit contributions are $40 per 1000 board feet of lumber products and $60 per 1000 square feet of plywood. The company is interested in maximizing profits. Provide a lin
Mr. Smith is in the 30 percent tax bracket. He earns $50,000 per year. Determine the rate for Good Neighborcare bond that would give Mr. Smith the same after tax return as Meg
If conditions are excellent, the NPV of the project is projected to be $3,000; under fair conditions, the NPV is projected at $950; and under unfavorable conditions, the NPV
If the firm is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows?
Last year the Black Water Inc. paid dividends $3.64. Company's dividends are expected to grow at an annual rate of 5% forever. The company's common stock is currently sellin