Briley Cosmetics manufactures and distributes a wide range of skin care products. A recent order has arrived for 10,000 cartons of face cream, 5,000 cases of body cream, and 15,000 cases of hand cream. The manufacturing process consists of a two-stage procedure that uses two types of raw materials (A and B). Briley’s monthly production capacity (first shift) is 15,000 labor-hours for stage 1 and 10,000 for stage 2. The first shift hourly rates are $8.50 for stage 1 and $9.25 for stage 2. A second shift is available with a 10% reduction in capacity and a 10% increase in wage rates. The cost for raw materials is $1/pound for Type A and $1.50/pound for Type B. The manufacturing facility has available for the next production run 200,000 pounds of Type A and 150,000 pound of Type B. The following table summarizes the resource requirements to produce each product. Briley can also subcontract with a local supplier for face cream and body cream at a cost of $40/carton and $55/carton, respectively. 1. What production schedule minimizes total cost while meeting product demand?
Briley Cosmetics manufactures and distributes a wide range of skin care products. A recent order has arrived for 10,000 cartons of face cream, 5,000 cases of body cream, and 15,000 cases of hand cream. The manufacturing process consists of a two-stage procedure that uses two types of raw materials (A and B). Briley’s monthly production capacity (first shift) is 15,000 labor-hours for stage 1 and 10,000 for stage 2. The first shift hourly rates are $8.50 for stage 1 and $9.25 for stage 2. A second shift is available with a 10% reduction in capacity and a 10% increase in wage rates. The cost for raw materials is $1/pound for Type A and $1.50/pound for Type B. The manufacturing facility has available for the next production run 200,000 pounds of Type A and 150,000 pound of Type B. The following table summarizes the resource requirements to produce each product. Briley can also subcontract with a local supplier for face cream and body cream at a cost of $40/carton and $55/carton, respectively.
1. What production schedule minimizes total cost while meeting product demand?
![Face
Body
Cream
Hand
Cream
Cream
Labor (hr/carton)
Stage 1
Stage 2
1.5
1.8
1.0
0.8
1.0
0.5
Raw Materials
(Ib/carton)
A
5.0
8.0
3.0
В
7.0
4.0
9.0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18c410ec-2887-49cc-a483-dc6856886e4b%2F7cd66453-57c3-4e11-9b2d-da71592fed31%2Fjh2iu2k_processed.jpeg&w=3840&q=75)
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