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    Rev - Confirming Pages: Labor and Clothing Item Materials Requirements Price Machine Cost

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    Desny Lê
    1) The document describes the materials, prices, and production costs for various fall casual clothing items. It also provides demand forecasts for each item. 2) It states that TrendLines has ordered specific amounts of various materials for production, and lists the prices per yard for each material. 3) The document discusses using scrap materials from producing certain items to make other items, like using silk scraps to make camisoles when blouses are made.

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    Rev - Confirming Pages: Labor and Clothing Item Materials Requirements Price Machine Cost

    Uploaded by

    Desny Lê
    97 views1 page
    1) The document describes the materials, prices, and production costs for various fall casual clothing items. It also provides demand forecasts for each item. 2) It states that TrendLines has ordered specific amounts of various materials for production, and lists the prices per yard for each material. 3) The document discusses using scrap materials from producing certain items to make other items, like using silk scraps to make camisoles when blouses are made.

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    OR1-9th_184-184.pdf

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    1) The document describes the materials, prices, and production costs for various fall casual clothing items. It also provides demand forecasts for each item. 2) It states that TrendLines has ordered specific amounts of various materials for production, and lists the prices per yard for each material. 3) The document discusses using scrap materials from producing certain items to make other items, like using silk scraps to make camisoles when blouses are made.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    97 views1 page

    Rev - Confirming Pages: Labor and Clothing Item Materials Requirements Price Machine Cost

    Uploaded by

    Desny Lê
    1) The document describes the materials, prices, and production costs for various fall casual clothing items. It also provides demand forecasts for each item. 2) It states that TrendLines has ordered specific amounts of various materials for production, and lists the prices per yard for each material. 3) The document discusses using scrap materials from producing certain items to make other items, like using silk scraps to make camisoles when blouses are made.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    hil76299_ch04_089-160.

    qxd 11/19/08 08:28 AM Page 159


    Rev.Confirming Pages

    CASES 159

    The fall casual fashions include:

    Labor and
    Clothing Item Materials Requirements Price Machine Cost

    Velvet pants 3 yards of velvet $350 $175


    2 yards of acetate for lining
    Cotton sweater 1.5 yards of cotton $130 $ 60
    Cotton miniskirt 0.5 yard of cotton $ 75 $ 40
    Velvet shirt 1.5 yards of velvet $200 $160
    Button-down blouse 1.5 yards of rayon $120 $ 90

    She knows that for the next month, she has ordered shirts. TrendLines does not want to produce more than the
    45,000 yards of wool, 28,000 yards of acetate, 9,000 yards forecasted demand because once the pants and shirts go out
    of cashmere, 18,000 yards of silk, 30,000 yards of rayon, of style, the company cannot sell them. TrendLines can pro-
    20,000 yards of velvet, and 30,000 yards of cotton for pro- duce less than the forecasted demand, however, since the
    duction. The prices of the materials are as follows: company is not required to meet the demand. The cashmere
    sweater also has limited demand because it is quite expen-
    sive, and TrendLines knows it can sell at most 4,000 cash-
    Material Price per yard mere sweaters. The silk blouses and camisoles have limited
    demand because many women think silk is too hard to care
    Wool $ 9.00
    Acetate $ 1.50
    for, and TrendLines projects that it can sell at most 12,000
    Cashmere $60.00 silk blouses and 15,000 silk camisoles.
    Silk $13.00 The demand forecasts also indicate that the wool
    Rayon $ 2.25 slacks, tailored skirts, and wool blazers have a great demand
    Velvet $12.00
    because they are basic items needed in every professional
    Cotton $ 2.50
    wardrobe. Specifically, the demand for wool slacks is 7,000
    pairs of slacks, and the demand for wool blazers is 5,000
    blazers. Katherine wants to meet at least 60 percent of the
    Any material that is not used in production can be sent back demand for these two items in order to maintain her loyal
    to the textile wholesaler for a full refund, although scrap ma- customer base and not lose business in the future. Although
    terial cannot be sent back to the wholesaler. the demand for tailored skirts could not be estimated,
    She knows that the production of both the silk blouse Katherine feels she should make at least 2,800 of them.
    and cotton sweater leaves leftover scraps of material. Specif-
    ically, for the production of one silk blouse or one cotton (a) Ted is trying to convince Katherine not to produce any velvet
    sweater, 2 yards of silk and cotton, respectively, are needed. shirts since the demand for this fashion fad is quite low. He
    From these 2 yards, 1.5 yards are used for the silk blouse argues that this fashion fad alone accounts for $500,000 of the
    fixed design and other costs. The net contribution (price of
    or the cotton sweater and 0.5 yard is left as scrap material.
    clothing item  materials cost  labor cost) from selling the
    She does not want to waste the material, so she plans to use
    fashion fad should cover these fixed costs. Each velvet shirt
    the rectangular scrap of silk or cotton to produce a silk generates a net contribution of $22. He argues that given the
    camisole or cotton miniskirt, respectively. Therefore, when- net contribution, even satisfying the maximum demand will not
    ever a silk blouse is produced, a silk camisole is also pro- yield a profit. What do you think of Ted’s argument?
    duced. Likewise, whenever a cotton sweater is produced, a (b) Formulate and solve a linear programming problem to maximize
    cotton miniskirt is also produced. Note that it is possible to profit given the production, resource, and demand constraints.
    produce a silk camisole without producing a silk blouse and
    a cotton miniskirt without producing a cotton sweater. Before she makes her final decision, Katherine plans to ex-
    The demand forecasts indicate that some items have plore the following questions independently except where
    limited demand. Specifically, because the velvet pants and otherwise indicated.
    velvet shirts are fashion fads, TrendLines has forecasted that (c) The textile wholesaler informs Katherine that the velvet can-
    it can sell only 5,500 pairs of velvet pants and 6,000 velvet not be sent back because the demand forecasts show that the

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