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    CaseStudy4 1

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    anon_582165930
    This case study examines the production planning and material needs for a fall clothing line. It provides details on 11 clothing items like their price, labor costs, material needs in yards of various fabrics like wool, cashmere, silk, etc. It also lists the available quantities of fabrics, their prices per yard and total material costs. The document discusses assumptions around meeting demand forecasts, handling waste from production and fixed overhead costs. It poses what-if scenarios around changes in costs, material availability and demand to determine the optimal production plan that maximizes profits.

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    CaseStudy4 1

    Uploaded by

    anon_582165930
    106 views3 pages
    This case study examines the production planning and material needs for a fall clothing line. It provides details on 11 clothing items like their price, labor costs, material needs in yards of various fabrics like wool, cashmere, silk, etc. It also lists the available quantities of fabrics, their prices per yard and total material costs. The document discusses assumptions around meeting demand forecasts, handling waste from production and fixed overhead costs. It poses what-if scenarios around changes in costs, material availability and demand to determine the optimal production plan that maximizes profits.

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    CaseStudy4_1

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    This case study examines the production planning and material needs for a fall clothing line. It provides details on 11 clothing items like their price, labor costs, material needs in yards of various fabrics like wool, cashmere, silk, etc. It also lists the available quantities of fabrics, their prices per yard and total material costs. The document discusses assumptions around meeting demand forecasts, handling waste from production and fixed overhead costs. It poses what-if scenarios around changes in costs, material availability and demand to determine the optimal production plan that maximizes profits.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    106 views3 pages

    CaseStudy4 1

    Uploaded by

    anon_582165930
    This case study examines the production planning and material needs for a fall clothing line. It provides details on 11 clothing items like their price, labor costs, material needs in yards of various fabrics like wool, cashmere, silk, etc. It also lists the available quantities of fabrics, their prices per yard and total material costs. The document discusses assumptions around meeting demand forecasts, handling waste from production and fixed overhead costs. It poses what-if scenarios around changes in costs, material availability and demand to determine the optimal production plan that maximizes profits.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 3

    Case Study: Fabrics and Fall Fashions

    Range Name
    ClothingItem
    Price
    LMCost
    MaterialNeeds
    PricePerYard
    MaterialOrder
    Lower
    Upper
    MaterialTotals

    Cells
    E5:E15
    F5:F15
    G5:G15
    I5:O15
    I20:O20
    I18:O18
    Q5:Q15
    R5:R15
    I16:O16

    ClothingItem
    Tailored Wool Slacks (WS)
    Cashmere Sweater (CS)
    Silk Blouse (SB)
    Silk Camisole (SC)
    Tailored Skirt (TS)
    Wool Blazer (WB)
    Velvet Pants (VP)
    Cotton Sweater (CT)
    Cotton Miniskirt (CM)
    Velvet Shirt (VS)
    Button-down Blouse (BB)

    Price
    300
    450
    180
    120
    270
    320
    350
    130
    75
    200
    120

    (Labor and Machine)


    LMCost
    160
    150
    100
    60
    120
    140
    175
    60
    40
    160
    90

    Notes:
    1. Upper bounds are marketing estimates of demand, where needed.
    2. Katherine (CEO) guesses at least 2,800 TS should be made.
    3. Katherine wants to meet at least 60% of WB and WS demand to keep custome
    4. More material cannot be ordered for this season, but leftover material (excludin
    5. Therefore, with every silk blouse, which produces 0.5 yards of waste, a silk cam
    We handle this by subtracting 0.5 of the silk required from MaterialNeeds for (S
    6. Also, with every cotton sweater, which produces 0.5 yards of waste, a cotton m
    We handle this by subtracting 0.5 of
    $3,560,000.00
    7. Profits will have to cover fixed costs, which include $860,000 for designers and
    So total profits are net profits minus this fixed overhead.

    What if's:
    1. If nothing changes, what is the solution, i.e., the production that maximizes pro
    2. What if Ted's (Production manager) advice to not make any velvet shirts is follo
    (He argues that the fixed design and other costs of this item are about $500,000,
    3. What if the excess velvet ordered cannot be returned for a refund?
    4. What if unexpected manufacturing problems increase wool blazer costs by $80
    5. What if an extra 10,000 yards of acetate could be obtained?
    6. What if all items not sold in Sept-Oct could be sold in unlimited quantities at a 6
    7. What if Katherine drops her guess about tailored skirts?

    or and Machine)
    Wool

    Acetate

    MaterialNeeds
    Cashmere Silk
    Rayon
    Velvet
    Cotton
    0
    0
    0
    0
    0
    1.5
    0
    0
    0
    0
    0
    1.5
    0
    0
    0
    0
    0.5
    0
    0
    0
    0
    0
    2
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    3
    0
    0
    0
    0
    0
    1.5
    0
    0
    0
    0
    0.5
    0
    0
    0
    1.5
    0
    0
    0
    1.5
    0
    0

    3
    0
    0
    0
    0
    2.5
    0
    0
    0
    0
    0

    2
    0
    0
    0
    1.5
    1.5
    2
    0
    0
    0
    0

    45000

    28000

    9000

    18000

    30000

    20000

    30000

    1.5

    60

    13

    2.25

    12

    2.5

    MaterialTotals
    MaterialOrders
    PricePerYard

    demand, where needed.


    S should be made.
    B and WS demand to keep customer base happy.
    eason, but leftover material (excluding waste) can be returned at cost.
    duces 0.5 yards of waste, a silk camisole is produced.
    k required from MaterialNeeds for (SB), since it will be counted under (SC).
    uces 0.5 yards of waste, a cotton miniskirt is produced.

    include $860,000 for designers and $2,700,000 for fashion shows.


    ed overhead.

    ., the production that maximizes profit? Account for non-integer entries, if they occur.
    to not make any velvet shirts is followed?
    sts of this item are about $500,000, which even selling every produced item can't cover.)
    e returned for a refund?
    ms increase wool blazer costs by $80 per unit?
    ould be obtained?
    be sold in unlimited quantities at a 60% reduction in Nov?
    ilored skirts?

    (Demand Forecasts)
    Production Limits
    Lower
    Upper
    7000
    4000
    12000
    15000
    5000
    5500

    6000

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