Question

Due to its popularity, the Black and White Handbag (BW14293) is normally a stock item. However, the handbag is currently out of stock. Rather than producing only enough units to fill Katie's order, management would like to produce a job (Job 114) that is large enough to fill Katie's order and replenish stock. The fabric used for this job can be stacked four layers deep for cutting, while still maintaining the quality and precision of the cut. Therefore, the company is able to realize some economies of scale by producing the handbags in multiples of 4. Management would like to produce enough units in this job to have a minimum of 35 and a maximum of 40 handbags left in stock after Katie's order has been filled. Custom Fabric Ventures Customer Order Form Customer: Katie's Boutique Order Date: 10/2/2012 Order Due Date: 10/15/2012 Description: Black & White Handbag Model Number: Quantity Unit Sales Price Total $75 BW14923 $525 7. Req. 1: To realize maximum efficiency and meet management's desired level of stock, how many Black & White handbags should be produced in Job 114? Number of handbags to be produced:

Answer 1

Let the no. of bags to be produced be “x”.

Now x-7>=35. Or x>=42

Also x-7<=40. Or x<=47

Thus x has to be between 42 and 47 and should be a multiple of 4. The numbers that are there between 42 and 47 are: 42, 43, 44, 45, 46 and 47. Of these numbers only 44 is a multiple of 4.

Thus the no. of handbags to be produced will be 44.