8.2 Manufacturing Applications
Production Mix
A fertile field for the use of LP is in planning for the optimal mix of products to manufacture. A company must meet a myriad of constraints, ranging from financial concerns to sales demand to material contracts to union labor demands. Its primary goal is to generate the largest profit possible.
Fifth Avenue Industries, a nationally known manufacturer of menswear, produces four varieties of ties. One is an expensive, all-silk tie; one is an all-polyester tie; one is a combination of polyester and cotton; and one is a combination of silk and cotton. The following table illustrates the cost and availability (per monthly production planning period) of the three materials used in the production process: ...
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