Expert Answer
Let, x1 = number of shirts produced each week
x2 = number of shorts produced each week
x3 = number of pants produced each week
Weekly sales revenue = 12×1 + 18×2 + 15×3
weekly variable costs = 6×1 + 4×2 + 8×3
weekly cost of renting the machine = 180y1 + 150y2 + 100y3
Thus, weekly profits = (weekly sales revenue) – (weekly variable costs) – (weekly cost of renting the machinery)
= (12×1 + 8×2 + 15×3) – (6×1 + 4×2 + 8×3) – (180y1 + 150y2 + 100y3)
= 6×1 + 4×2 +7×3 – 180y1 – 150y2 – 100y3
Since its supply of labor and cloth is limited, company faces the following two constraints:
Constraint 1 At most, 160 hours of labor can be used each week
Constraint 2 At most, 170 sq yds of cloth can be used each week
Constraint 1 can be expressed as –
3×1 + 2×2 + 6×3 < 160 (labor constraint)
Constraint 2 is expressed as –
4×1 + 3×2 + 4×3 < 170 (cloth constraint)
max z = 6×1 + 4×2 + 7×3 – 180y1 – 150y2 – 100y3 ——— 1
s.t. 3×1 + 2×2 + 6×3 < 160 ———– 2
4×1 + 3×2 + 4×3 < 170 ———— 3
x1, x2, x3 > 0;
y1, y2, y3 = 0 or 1
There is no optimum solution to the problem. Because, x1 = 20, x2 = 20, x3 = 10 is not satisfying both equation 2 and 3.