Fifth Avenue Industries (Make-Buy)

Number of units
Selling price
Labor cost
Material cost
Outsourcing cost
Profit
Constraints:
Yards of silk
Yards of polyester
Yards of cotton
All silk demand
All poly demand
Blend-1 demand
Blend-2 demand

B1

B2

So

Po

B1o

B2o

All silk All poly Blend-1 Blend-2 All silk All poly Blend-1 Blend-2
to make to make to make to make to buy to buy
to buy
to buy
7000.0 12589.3 16000.0 6428.6
0.0
1410.7
0.0
2071.4
$6.70
$3.55
$4.31
$4.81 $6.70 $3.55
$4.31
$4.81 $206,445.00
$0.75
$0.75
$0.75
$0.75
$31,513.39
$2.50
$0.48
$0.75
$0.81
$40,750.00
$4.25 $2.00
$2.50
$2.20
$7,378.57
$3.45
$2.32
$2.81
$3.25 $2.45 $1.55
$1.81
$2.61 $126,803.04
0.125
0.08

0.05
0.05

0.03
0.07

1
1

1
1

1
1

875.00
2000.00
1250.00
7000.00
14000.00
16000.00
8500.00
LHS

<=
1000
<=
2000
<=
1250
=
7000
= 14000
= 16000
=
8500
Sign RHS

Cost/Yd
$20
$6
$9