Operations Management: Other Operations Management Problems – #75

Question: A clothing company produces shirts and pants. Each shirt requires 2 square yards of cloth, and each pair of pants requires 3 square yards of cloth. During the next two months the following demands for shirts and pants must be met (on time): month 1, 1000 shirts and 1500 pairs of pants; month 2, 1200 shirts and 1400 pairs of pants. During each month the following resources are available: month 1, 9000 square yards of cloth; month 2, 6000 square yards of cloth. (Cloth that is available during month 1 and is not used can be used during month 2). During each month it costs $4 to make an article of clothing with regular-time labor and $8 with overtime labor. During each month a total of at most 2500 articles of clothing can be produced with regular-time labor, and an unlimited number of articles of clothing can be produced with overtime labor. At the end of each month, a holding cost of $3 per article of clothing is assessed. Determine how to meet demands for the next 2 months (on time) at minimum cost. Assume that at the beginning of month 1, 100 shirts and 200 pairs of pans are available.


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