Fifth Avenue Industries, a nationally Known manufacturer of menswear, produces four types of

ties. One is an expensive, all-silk tie, one is an all- polyester tie, and two are blends of polyester
and cotton. The following table illustrates the cost and availability (per monthly production
planning period) of the three materials used in the production process:

Material Cost per yard($) Material available per month(yards)

Silk 21 800
Polyester 6 3000
Cotton 9 1600
The firm has fixed contracts with several major departments’ stores chains to supply ties. The
contracts require that Fifth Avenue Industries supply a minimum quantity of each tie but allow
for a larger demand if Fifth Avenue chooses to meet that demand. (Most of the ties are not
shipped with the name Fifth Avenue on their label, incidentally, but with “private stock” labels
supplied by the stores.) Following table summarizes the contract demand for each of the four
styles of ties, the selling price per tie, and the fabric requirements of each variety.

Variety of the Selling price Monthly Monthly Material Material

tie per tie ($) contract Demand required per Requirements
minimum tie(yards)
All silk 6.70 6000 7000 0.125 100% silk
All polyester 3.50 10000 14000 0.08 100% polyester
Poly cotton 4.30 13000 16000 0.10 50-50%polyester-
blend 1 cotton
Poly cotton 4.80 6000 8500 0.10 30-70% polyester-
blend 2 cotton
Formulate and solve the LPP to maximize the profit.

Q6: Elli Daisy manufactures two drugs in Indianapolis and Los Angeles. The cost of production
and the machine time required for drugs is given in the following table.

City Cost of production Machine Time(Hour)

per pound of drug ($) required per pound of
drug
Drug 1 Drug 2 Drug 1 Drug 2
Indianapolis 4.10 4.50 0.2 0.3
Los Angeles 4.00 5.20 0.24 0.33
Elli Daisy needs to produce at least 1000 pounds of drug 1 and 2000 pounds of drug 2 per week.
The company has 500 hours per week of machine time in Indianapolis and 400 hours per week
of machine time in Los Angeles. Determine how Elli Daisy can minimize the cost of producing
the needed drugs. Formulate the problem.