Your company manufactures two types of baseball mitts, Fielder and Catcher. The Fielder gloves generate $5 profit, and the Catcher gloves generate $8 profit.
business
Description
Portfolio 2 questions
Limits and Sensitivity
Your
company manufactures two types of baseball mitts, Fielder and Catcher. The Fielder gloves generate $5 profit, and
the Catcher gloves generate $8 profit.
Production times (in
minutes) of each glove type are shown below, based on data you have collected
from your assembly line.
|
|
Cutting & Sewing |
Finishing |
Packaging and Shipping |
|
Fielder |
60 |
30 |
12.5 |
|
Catcher |
90 |
20 |
15 |
Over the next month, you
estimate you have 900 hours of cutting and sewing time available, 300 hours of
finishing time, and 100 hours of packaging and shipping time available.
1. How many of each glove type should you
manufacture over the next month in order to maximize profit? What is the amount of profit?
2. What profit amounts can Fielder gloves assume
without your business decision changing?
What business decision would you make outside of this range (on both
ends)?
3. What profit amounts can Catcher gloves assume
without your business decision changing?
What business decision would you make outside of this range (on both
ends)?
4. What business decision would you make if the
profit on Fielder gloves increased to $8 and the profit on Catcher gloves
decreased to $5?
5. What are the values (per hour) of your three
labor commodities (Cutting & Sewing, Finishing, and Packaging and Shipping)
at your current solution? What is the
minimum amount of each of these you would purchase (individually)? What is the maximum additional amount you
would purchase of each commodity individually, and how much would you pay for
each increase?
6. A luggage maker offers to buy some of your
labor to help him crash during the holiday season. He would like 50 hours of cutting and sewing,
10 hours of finishing, and 20 hours of packaging and shipping. What is the minimum amount you would charge
to contract out your labor force to meet his requirements?
7. What is the cost to you (per glove) of
requiring that you manufacture fielder gloves at this point?
