Cut and Stitch (CS) make two types of suits using skilled tailors (labour) and a delicate and
unique fabric (material). Both the tailors and the fabric are in short supply and so the
accountant at CS has correctly produced a linear programming model to help decide the
optimal production mix.
The model is as follows:
Variables:
Let W = the number of work suits produced
Let L = the number of lounge suits produced
Constraints
Tailors’ time: 7W + 5L < 3,500 (hours) – this is line T on the diagram
Fabric: 2W + 2L < 1,200 (metres) – this is line F on the diagram
Production of work suits: W < 400 – this is line P on the diagram
Objective is to maximise contribution subject to:
C = 48W + 40L
On the diagram provided the accountant has correctly identified OABCD as the feasible
region and point B as the optimal point.
Calculate the new optimum production plan if maximum demand for W falls to
200 units. ?
They have taken Line F to solve the equation stating that Line F and w=200 intersect at the optimal point. I didn't understand.
Ask the Tutor ACCA FM
Cut and Stitch
This is linear programming and is examinable in Paper PM. It is not examinable in Paper FM (and you have posted your question in the Paper FM forum).
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