Expedition Outfitters manufactures a variety of specialty clothing for hiking, skiing, and mountain climbing. Its management decided to begin production on two new parkas designed for use in extremely cold weather: the Mount Everest Parka and the Rocky Mountain Parka. The manufacturing plant has 9600 minutes of cutting time and 9600 minutes of sewing time available for producing these two parkas. Each Mount Everest Parka requires 30 minutes of cutting time and 45 minutes of sewing time, and each Rocky Mountain Parka requires 20 minutes of cutting time and 15 minutes of sewing time. The labor and material cost is $150 for each Mount Everest Parka and $50 for each Rocky Mountain Parka, and the retail prices through the firm’s mail order catalog are $250 for the Mount Everest Parka and $200 for the Rocky Mountain Parka. (a) Formulate a linear optimization model that can be used to determine how many units of each model should it manufacture to maximize the total profit contribution. (b) What are the optimal production quantities?
Expedition Outfitters manufactures a variety of specialty clothing for hiking, skiing,
and mountain climbing. Its management decided to begin production on two new
parkas designed for use in extremely cold weather: the Mount Everest Parka and the
Rocky Mountain Parka. The manufacturing plant has 9600 minutes of cutting time
and 9600 minutes of sewing time available for producing these two parkas. Each Mount
Everest Parka requires 30 minutes of cutting time and 45 minutes of sewing time, and
each Rocky Mountain Parka requires 20 minutes of cutting time and 15 minutes of
sewing time. The labor and material cost is $150 for each Mount Everest Parka and
$50 for each Rocky Mountain Parka, and the retail prices through the firm’s mail order
catalog are $250 for the Mount Everest Parka and $200 for the Rocky Mountain Parka.
(a) Formulate a linear optimization model that can be used to determine how many
units of each model should it manufacture to maximize the total profit contribution.
(b) What are the optimal production quantities?
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