4. Which labor and material resources are completely used?5. What would be the impact on the optimal solution if the demand for all threeproducts were decreased by 10% each?6. What would be the impact on the optimal solution if hand cream could besubcontracted at a cost of $35/carton? Briley Cosmetics manufactures and distributes a wide range of skin care products. Arecent order has arrived for 10,000 cartons of face cream, 5,000 cases of body cream,and 15,000 cases of hand cream. The manufacturing process consists of a two-stageprocedure that uses two types of raw materials (A and B). Briley's monthly productioncapacity (first shift) is 15,000 labor-hours for stage 1 and 10,000 for stage 2. The firstshift hourly rates are $8.50 for stage 1 and $9.25 for stage 2. A second shift is availablewith a 10% reduction in capacity and a 10% increase in wage rates. The cost for rawmaterials is $1/pound for Type A and $1.50/pound for Type B. The manufacturingfacility has available for the next production run 200,000 pounds of Type A and 150,000pound of Type B. The following table summarizes the resource requirements to produceeach product.FaceBodyCreamHandCreamCreamLabor (hr/carton)Stage 1Stage 2Raw Materials1.51.81.00.81.00.5(Ib/carton)A5.08.03.0В7.04.09.0Briley can also subcontract with a local supplier for face cream and body cream at acost of $40/carton and $55/carton, respectively.

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4. Which labor and material resources are completely used? 5. What would be the impact on the optimal solution if the demand for all three products were decreased by 10% each? 6. What would be the impact on the optimal solution if hand cream could be subcontracted at a cost of $35/carton?

4. Which labor and material resources are completely used? 5. What would be the impact on the optimal solution if the demand for all three products were decreased by 10% each? 6. What would be the impact on the optimal solution if hand cream could be subcontracted at a cost of $35/carton?

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Question

4. Which labor and material resources are completely used?
5. What would be the impact on the optimal solution if the demand for all three
products were decreased by 10% each?
6. What would be the impact on the optimal solution if hand cream could be
subcontracted at a cost of $35/carton?

Briley Cosmetics manufactures and distributes a wide range of skin care products. A
recent order has arrived for 10,000 cartons of face cream, 5,000 cases of body cream,
and 15,000 cases of hand cream. The manufacturing process consists of a two-stage
procedure that uses two types of raw materials (A and B). Briley's monthly production
capacity (first shift) is 15,000 labor-hours for stage 1 and 10,000 for stage 2. The first
shift hourly rates are $8.50 for stage 1 and $9.25 for stage 2. A second shift is available
with a 10% reduction in capacity and a 10% increase in wage rates. The cost for raw
materials is $1/pound for Type A and $1.50/pound for Type B. The manufacturing
facility has available for the next production run 200,000 pounds of Type A and 150,000
pound of Type B. The following table summarizes the resource requirements to produce
each product.
Face
Body
Cream
Hand
Cream
Cream
Labor (hr/carton)
Stage 1
Stage 2
Raw Materials
1.5
1.8
1.0
0.8
1.0
0.5
(Ib/carton)
A
5.0
8.0
3.0
В
7.0
4.0
9.0
Briley can also subcontract with a local supplier for face cream and body cream at a
cost of $40/carton and $55/carton, respectively.

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