Zara stores in the United States stocks a particular type of designer denim jeans in the United States. It stores 500 pairs of jeans each month from its two suppliers. The Hong Kong supplier charges Zara $11 per pair of jeans, and the Colombian supplier charges $16 per pair (and then Zara marks them up almost 1,000%). Although the jeans from Hong Kong are less expensive, they also have more defects than those from Colombia. Based on past data, Zara estimates that 7% of the Hong Kong jeans will be defective compared to only 2% from Colombia and Zara does not want to import any more than 5% defective items. However, Zara does not want to rely on a single supplier, so it wants to order at least 20% from each supplier every month. a. Formulate a linear programming model for this problem. b. Solve the linear programming model graphically. Use either iso-line or corner point method. How many of each should Zara buy? c. How much will Zara pay for them?
Zara stores in the United States stocks a particular type of designer denim jeans in the
United States. It stores 500 pairs of jeans each month from its two suppliers. The Hong
Kong supplier charges Zara $11 per pair of jeans, and the Colombian supplier charges
$16 per pair (and then Zara marks them up almost 1,000%). Although the jeans from
Hong Kong are less expensive, they also have more defects than those from Colombia.
Based on past data, Zara estimates that 7% of the Hong Kong jeans will be defective
compared to only 2% from Colombia and Zara does not want to import any more than
5% defective items. However, Zara does not want to rely on a single supplier, so it wants
to order at least 20% from each supplier every month.
a. Formulate a linear programming model for this problem.
b. Solve the linear programming model graphically. Use either iso-line or corner point
method. How many of each should Zara buy?
c. How much will Zara pay for them?
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