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[answered] Lao learns that changes might have to be made to the March


Lao learns that changes might have to be made to the March plans. If a new customer is ob- tained,the cotton demand in Manila and in Mexico City will increase by |O% at each loca- tion. Meanwhile, a big NewYork customer might cut back, which would reduce polyester demand by |O% in both NewYork and Chicago. Find the contingent optimal schedules and total costs (a) for cotton and (b) for polyester. lnternationalTextile loses a pro?t of $ | O for each bolt of cotton it falls short of meeting the distribu- tion center?s demand. For polyester, the loss is $20 per bolt; for silk, it is a whopping $50 per bolt. By running the mills on overtime,the com- pany can produce additional bolts at the addi- tional costs shown in Table 5. | 7. Using only the original data from Tables 5. l4 through 5. | 6 and the information in Table 5. | 7, determine new pro- duction schedules to maximize overall pro?t for successively (a) cotton, (b) polyester, and (c) silk. Which fabrics and locations involve overtime production, and what are the overtime quantities? Without making any calculations, offer Lao other suggestions for reducing costs of transportation. Table 5. | 7 Overtime Production Costs Cost per Bolt Mill Cotton Polyester Silk Bahamas $10 $10 N.A. Hong Kong 15 12 $25 Korea 5 8 22 Nigeria 6 NA. NA. Venezuela 7 6 NA.
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