Briley Cosmetics manufactures and distributes a wide range of skin care products. A
recent order has arrived for 10,000 cartons of face cream, 5,000 cases of body cream,
and 15,000 cases of hand cream. The manufacturing process consists of a two-stage
procedure that uses two types of raw materials (A and B). Briley’s monthly production
capacity (first shift) is 15,000 labor-hours for stage 1 and 10,000 for stage 2. The first
shift hourly rates are $8.50 for stage 1 and $9.25 for stage 2. A second shift is available
with a 10% reduction in capacity and a 10% increase in wage rates. The cost for raw
materials is $1/pound for Type A and $1.50/pound for Type B. The manufacturing
facility has available for the next production run 200,000 pounds of Type A and 150,000
pound of Type B. The following table summarizes the resource requirements to produce
each product.
Face
Cream
Body
Cream
Hand
Cream
Labor (hr/carton)
Stage 1 1.5 1.8 1.0
Stage 2 0.8 1.0 0.5
Raw Materials
(lb/carton)
A 5.0 8.0 3.0
B 7.0 4.0 9.0
Briley can also subcontract with a local supplier for face cream and body cream at a
cost of $40/carton and $55/carton, respectively.
- What production schedule minimizes total cost while meeting product demand?
- How much face cream and body cream is subcontracted out?
- What is the value of the objective function?
- Which labor and material resources are completely used?
- What would be the impact on the optimal solution if the demand for all three
products were decreased by 10% each? - What would be the impact on the optimal solution if hand cream could be
subcontracted at a cost of $35/carton?
Sample Solution
The post Briley Cosmetics Inc. appeared first on ACED ESSAYS.