Bag Company produces leather jackets and handbags. A jacket requires of leather and a handbag only . The labor requirements for the two products are 12 and 5 hours respectively. The current weekly supplies of leather and labor are limited to and 1,850 hours. The company sells the jackets for $350 and the handbags for $120. The objective is to determine the production schedule that maximizes the net revenue. In this document, write the mathematical formulation of both the primal and the dual problems. In the Excel file used in problem 1, solve the primal problem and generate a Solver sensitivity report in a new worksheet. In this document, use the Solver sensitivity report to answer the following two questions: What is the maximum purchase price the company should pay for additional leather? What is the maximum amount the company should pay for additional labor?

Bag Company produces leather jackets and handbags. A jacket requires of leather and a handbag only . The labor requirements for the two products are 12 and 5 hours respectively. The current weekly supplies of leather and labor are limited to and 1,850 hours. The company sells the jackets for $350 and the handbags for $120. The objective is to determine the production schedule that maximizes the net revenue. In this document, write the mathematical formulation of both the primal and the dual problems. In the Excel file used in problem 1, solve the primal problem and generate a Solver sensitivity report in a new worksheet. In this document, use the Solver sensitivity report to answer the following two questions: What is the maximum purchase price the company should pay for additional leather? What is the maximum amount the company should pay for additional labor?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 47P

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