Assignment 1

1. Par, Inc., is small manufacturer of golf equipment and supplies. Par has been convinced by its
distributor that there is an existing market for both a medium-priced golf bag, referred to as a
standard model, and a high-priced golf bag, referred to as a deluxe model. The distributor is so
confident of the market that, if Par can make the bags at a competitive price, the distributor has
agreed to purchase all the bags that Par can manufacture over the next three months. A careful
analysis of the manufacturing requirements resulted in the following table, which shows the
production time requirements for the four required manufacturing operations and the accounting
department’s estimate of the profit contribution per bag.

Production Time (hours)

Cutting Inspection Profit per bag
Product
and Sewing Finishing and ($)
Dyeing Packaging
Standard 7/10 1/2 1 1/10 10
Deluxe 1 5/6 2/3 1/4 9

The director of manufacturing estimates that 630 hours of cutting and dyeing time, 600 hours of
sewing time, 708 hours of finishing time, and 135 hours of inspection and packaging time will be
available for the production of golf bag during the next 3 months. If the company wants to
maximize total profit contribution, how many bags of each model should it manufacture?

2. Greentree Kennels, Inc., provides overnight lodging for pets. A particular feature at greentree is
the quality of care the pets receive, including excellent food. The kennel’s dog food is made by
mixing two brand-name dog food products to obtain what the kennel call the “well-balanced dog
diet.” The data for the two dog foods are as follows.

Dog Food Cost/Ounce ($) Protein (%) Fat (%)

Bark bits 0.06 30 15
Canine Chow 0.05 20 30

If Greentree wants to be sure that the dog receives at least 5 ounces and at least 3 ounces of fat
per day, what is the minimum cost mix of two dog food products?

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3. M&D chemical produces two products that are sold as raw materials to companies
manufacturing bath soaps, laundry detergents, and other soap products. Based on an analysis of
current inventory levels and potential demand for the coming month, M&D’s management has
specified that the total production for product 1 and 2 combined must be at least 350 gallons.
Also, a major customer’s order for 125 gallons of product 1 must be satisfied. Product 1 require 2
hours of processing time per gallons and product 2 requires 1 hour of processing time per gallons;
for coming month, 600 hours of processing time are available. Production costs are $2 per gallon
for product 1 and $3 per gallon for product 2. Determine the production quantities that will satisfy
the requirements specified at minimum cost.

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