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The Chic Sheet Company have to plan production for the next week. The firm produces two types of sheet, standard and luxury, in packs that are sold to retailers for £80 and £145 respectively. The costs of materials are £25 per pack of standard sheets and £45 per pack of luxury sheets. These materials are available in unlimited amounts.
There are three production departments, cutting, machining and packing. The workforce includes 10 cutters, 150 machinists and 40 packers. The labour required per pack for each product and the labour charges for each department are:
The factory works a 37.5-hour week.
(a) Work out the profit per pack for each product.
(b) Find the production mix that will enable the company to maximize its profit for the week, and determine the level of profit that would result.
(c) Identify which constraints are tight and which are slack.
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