Question: Refer to the GulfGolf problem described in
Refer to the GulfGolf problem described in Section 2.1. Suppose that management encounters each of the following situations: a. The accounting department revises its estimate of the profit contribution for the deluxe bag to $18 per bag. b. A new low-cost material is available for the standard bag, and the profit contribution per standard bag can be increased to $20 per bag. (Assume the profit contribution of the deluxe bag is the original $9 value.) c. New sewing equipment is available that would increase the sewing operation capacity to 750 hours. (Assume 10S + 9D is the appropriate objective function.) If each of these conditions is encountered separately, what are the optimal solution and the total profit contribution for each situation? Data from section 2.1: GulfGolf is a small family-run company in the United Arab Emirates. It manufactures golfing equipment aimed at the increasing demand, primarily from tourists coming for golfing holidays in the Gulf region. The company has decided to manufacture two new products: a medium-priced golf bag and a more up-market, expensive golf bag. The company’s products are priced in US$ given its international customer base. The company’s distributor is enthusiastic about the new product line and has agreed to buy all the golf bags the company produces over the next three months. After a thorough investigation of the steps involved in manufacturing a golf bag, management determined that each golf bag produced will require the following four operations: 1. Cutting and dyeing the material needed. 2. Sewing. 3. Finishing (inserting umbrella holder, club separators, etc.). 4. Inspection and packaging. The director of manufacturing analyzed each of the operations and concluded that if the company produces a medium-priced standard model, each bag will require 7/10 hours in the cutting and dyeing department, 1/2 hour in the sewing department, one hour in the finishing department, and 1/10 hour in the inspection and packaging department. The more expensive deluxe model will require one hour for cutting and dyeing, 5/6 hour for sewing, 2/3 hour for finishing, and 1/4 hour for inspection and packaging. This production information is summarized in Table 2.1. Data from table 2.1: 
Production is constrained by the limited number of hours available in each department. After studying departmental workload projections, the director of manufacturing estimates that 630 hours for cutting and dyeing, 600 hours for sewing, 708 hours for finishing and 135 hours for inspection and packaging will be available for the production of golf bags during the next three months. The accounting department analyzed the production data, assigned all relevant variable costs and arrived at prices for both bags that will result in a profit contribution 1 of $10 for every standard bag and $9 for every deluxe bag produced.
Transcribed Image Text:
Table 2.1 Production Requirements Per Golf Bag Production Time (hours) Department Standard Bag Deluxe Bag Cutting and Dyeing Sewing Finishing Inspection and Packaging 1 23 'ho
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