Formulate and solve a linear programming model
Course:- Finance Basics
Reference No.:- EM1349747

Assignment Help
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

Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
Five years ago, Thompson Tarps Inc. issued twenty-five-year 10% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have risen and the y
Identify and recommend at least 1 credible Web site that discusses the process of calculating the models most commonly used to support capital budgeting decisions, and addre
Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best-case and worst-case NPV figure
Corporate bonds issued by Johnson Corporation currently yield 8 percent. Municipal bonds of equal risk currently yield 6 percent. At what tax rate would an investor be indiffe
What will be the outcome of investing $100 in the EU market with a forward Cover (sale)? Is there an arbitrage opportunity? If so, which way will the arbitrage capital mov
You wish to establish a scholarship fund for students at Clever College. The fund wouldpay an annual scholarship that would start at $5,000 awarded one year from now andincr
General Motors may file for bankruptcy during this class. Find the GM 2008 Annual report and review the total revenue, net income and profits for 2008 compared to previous yea
Prepare a report for the mayor and city council on your proposed expenditure plan assessing the key course objectives including fund accounting and financial controls, contr