Question

In: Advanced Math

Khadija Textile Mills produces two types of cotton cloth—Rough and Smooth. Smooth is a heavier grade...

Khadija Textile Mills produces two types of cotton cloth—Rough and Smooth. Smooth is a heavier grade of cotton cloth and, as such, requires 7.5 kg of raw cotton per meter, whereas Rough requires 5 kg of raw cotton per meter. A meter of Smooth requires 3.2 hours of processing time; a meter of Rough requires 3.0 hours. Although the demand for Rough is practically unlimited, the maximum demand for Smooth is 510 meters per month. The manufacturer has 6,500 kg of cotton and 3,000 hours of processing time available each month. The manufacturer makes a profit of OMR2.25 per meter of Rough and OMR3.10 per meter of Smooth. The manufacturer wants to know how many meters of each type of cloth to produce to maximize profit.

Answer the following questions: (2 Marks each)

1. Formulate a linear programming model for this problem.
2. Solve the model graphically and explain the solution.
3. What is the effect on the optimal solution if the profit per meter of Rough is increased from OMR2.25 to OMR3.00?
4. Solve the linear programming model for Khadija Textile Mills by using the computer. Produce the solution and tell if Khadija Textile Mills can obtain additional cotton or processing time, but not both, which should it select? How much? Explain your answer.
5. Identify the sensitivity ranges for the objective function coefficients and for the constraint quantity values. Then explain the sensitivity range for the demand for Smooth.

Solutions

Expert Solution

PLEASE UP VOTE WITH MANY THUMBS UP !!!


Related Solutions

Modern Textile Mills produces two types of cotton cloth, denim and corduroy. Corduroy is a heavier...
Modern Textile Mills produces two types of cotton cloth, denim and corduroy. Corduroy is a heavier grade of cotton cloth and requires 5 pounds of raw cotton per yard, whereas denim requires 3 pounds of raw cotton per yard. A yard of corduroy requires 3.6 hours of processing time; a yard of denim requires 3.0 hours. Although the demand for denim is practically unlimited, the maximum demand for corduroy is 20 yards per month. The manufacturer has 150 pounds of...
Burlington Mills produces denim cloth that it sells to jeans manufacturers. It is negotiating a new...
Burlington Mills produces denim cloth that it sells to jeans manufacturers. It is negotiating a new contract to provide cloth on a weekly basis to BJ Jeans. The demand for cloth from BJ Jeans is expected to vary each week according the following discrete probability distribution: Demand (yd) 0 0.05 100 0.15 200 0.40 300 0.30 400 0.10 Burlington’s plant capacity available for this new job will vary each week because of other commitments and occasional breakdowns. Burlington estimates that...
A textile company produces two types of materials A and B. The material A is produced...
A textile company produces two types of materials A and B. The material A is produced according to direct orders from furniture manufacturers. The material B is distributed to retail fabric stores. The average production rates for the material A and B are identical at 1,000 meters/hour. By running two shifts the operational capacity of the plant is 80 hours per week. The marketing department reports that the maximum estimated sales for the following week is 70,000 meters of material...
What was the two-price cotton policy? How did this affect U.S. textile producers?
What was the two-price cotton policy? How did this affect U.S. textile producers?
Question 3 Relevant costs (25 marks) Kota Mills produces two types of brocade, silk and polyester....
Question 3 Relevant costs Kota Mills produces two types of brocade, silk and polyester. Last month 450 bolts of the polyester brocade and 4,000 bolts of the silk brocade were produced and sold. Average prices and costs for the two products for last month were: Brocade Polyester Silk Selling price 95 225 Direct materials 40 95 Direct labour 5 25 Variable overhead 5 15 Product line fixed costs 10 40 Corporate fixed costs 25 25 Average Margin per unit 10...
Consider a country that produces two goods cloth (C) and food (F) with two factors of...
Consider a country that produces two goods cloth (C) and food (F) with two factors of production: land (T) and labor (L). The technology for cloth and food are as follows. Qc= Min {1/20 L,T}, Qf= Min {1/5 L,T}, where Qc denotes the amount of cloth produced and Qf denotes the amount of food produced. Denote the wage by w and the rent of land by r. A).Suppose that the economy’s total resources are 600 hours of labor and 60...
Two different textile companies, McDaniel-Edwards Manufacturing and Jordan-Hocking Mills, began operations with identical balance sheets. A...
Two different textile companies, McDaniel-Edwards Manufacturing and Jordan-Hocking Mills, began operations with identical balance sheets. A year later both required additional manufacturing capacity at a cost of $300,000. McDaniel-Edwards obtained a 5-year, $300,000 loan at an 6% interest rate from its bank. Jordan-Hocking, on the other hand, decided to lean the required $300,000 capacity from National Leasing for 5 years; an 6% return was build into the lease. The balance sheet for each company, before the asset increase, is as...
Two textile companies, McNulty-Grunewald Manufacturing and Jackson-Kenny Mills, began operations with identical balance sheets. A year...
Two textile companies, McNulty-Grunewald Manufacturing and Jackson-Kenny Mills, began operations with identical balance sheets. A year later both required additional manufacturing capacity at a cost of $150,000. McNulty-Grunewald obtained a 5-year, $150,000 loan at a 7% interest rate from its bank. Jackson-Kenny, on the other hand, decided to lease the required $150,000 capacity from National Leasing for 5 years; a 7% return was built into the lease. The balance sheet for each company, before the asset increase, is as follows:...
AC Ltd. produces three different types of products, namely textile, beverage and materials for construction. Its...
AC Ltd. produces three different types of products, namely textile, beverage and materials for construction. Its products are produced in large scales and sold in the Asean region. Required: Identify if AC should be organized in the functional model or the business unit model? How is management control in AC Ltd?
Consider a country, Home, which produces two goods, Cloth and Food, using capital and labour with...
Consider a country, Home, which produces two goods, Cloth and Food, using capital and labour with a constant-return-to-scale technology. Food production is capital-intensive and cloth production is labour-intensive. Capital and labour can move freely between the two industries. Finally, let’s assume that Home’s consumption decisions can be represented using regularly-shaped indifference curves. 1.When Home is not engaged in international trade, use a graphic to illustrate the consumption and production points in Home in autarky (pre-trade situation). (2 points) 2. Assume...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT