Expedition manufacturers a variety of specialty clothing for skiing and mountain climbing. The company has decided...

Expedition manufacturers a variety of specialty clothing for skiing and mountain climbing. The company has decided to begin production on two new parkas designed for use in extremely cold weather: the Mount Everest Parka and the Rocky Mountain Parka. Expedition’s manufacturing plant only has 120 hours of cutting time and 140 hours of sewing time available. There is plenty of material to make the coats, except the fact that the zipper union is on strike and there are only 340 zippers. Because management believes that the Mount Everest Parka is a unique coat that will enhance the image of the firm, management has specified that at least 80 of this model must be produced. Each Mount Everest Parka requires 30 minutes of cutting time and 45 minutes of sewing time; the Labor and Material cost is $150 and the retail price is $250. Each Rocky Mountain Parka requires 20 minutes of cutting time and 15 minutes of sewing time; the Labor and Material cost is $50 and the retail price is $200. How many units of each model should be produced?

Using Solver in Excel, how do you put this in?

Solutions

Expert Solution

Let the quantities of Mount Everest Parka to be manufactured be “ME” and that of Rocky Mountain Parka to be manufactured be “RM”.

Profit from 1 Mount Everest Parka = 250-150 = $100 and profit from 1 Rocky Mountain Parka = 200-50 = $150

Thus objective function will be: 100ME + 150RM. This has to be maximized.

Constraints are:

(i): 30ME+20RM <=120*60 OR 30ME+20RM<=7200

(ii): 45ME+15RM<=140*60 OR 45ME+15RM<=8400

(iii): ME+RM<=340

(iv): ME>=80

Solving the above in excel using the solver function we get the following solution:

ME	80
RM	240
			Formula
Objective function	44,000		100ME + 150RM

Constraints
7,200	<=	7,200	30ME+20RM<=7200
7,200	<=	8,400	45ME+15RM<=8400
320	<=	340	ME+RM<=340
80	>=	80	ME>=80

Thus the company should make 80 units of Mount Everest Parka and 240 units of Rocky Mountain Parka. The profit will be $44,000

Excel's solver image:

jeff jeffy answered 2 hours ago

Next > < Previous

Related Solutions

1. High Mountain produces a variety of climbing and mountaineering equipment. One of the products is a...

1. High Mountain produces a variety of climbing and mountaineering equipment. One of the products is a traditional three-stranded climbing robe. An important characteristic of any climbing rope is its tensile strength. High Mountain produces the three-strand rope on two separate production lines: one in Bozeman and the other in Challis. The Bozeman line has recently installed new production equipment. High Mountain regularly tests the tensile strength of its ropes by randomly selecting ropes from production and subjecting then to various...

Milton Manufacturing Company produces a variety of textiles for distribution to wholesale manufacturers of clothing products....

Milton Manufacturing Company produces a variety of textiles for distribution to wholesale manufacturers of clothing products. The company’s primary operations are located in Long Island City, New York, with branch factories and warehouses in several surrounding cities. Milton Manufacturing is a closely held company, and Irv Milton is the president. He started the business in 2008, and it grew in revenue from $500,000 to $5 million in 10 years. However, the revenues declined to $4.5 million in 2018. Net cash...

Mountain Distribution has decided to analyze the profitability of five new customers. The company has the...

Mountain Distribution has decided to analyze the profitability of five new customers. The company has the following activities: Activity Cost Driver Rate Order taking $80 per purchase order Customer visits $80 per customer visit Deliveries $4.00 per delivery mile travelled Product handling $0.85 per case sold Expedited deliveries $335 per expedited delivery. It buys bottled water at $12.20 per case and sells to retail customers at a list price of $14.50 per case. Data pertaining to the five customers are:...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. For years, Worley believed that the 5% markup covered its selling...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% markup covered its selling and...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. For years, Worley believed that the 5% markup covered its selling and...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies. For years, Worley believed that the 6% markup covered its selling and...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 9%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase these supplies. For years, Worley believed that the 9% markup covered its selling...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 10%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $110 to purchase these supplies. For years, Worley believed that the 10% markup covered its selling and...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% markup covered its selling and...

Subjects