Case: THE BLUE SHOE COMPANY

The Blue Shoe Company produces two models of men’s shoes. Model A has a unit
profit of P40 while Model B has P60. Model A requires 6 hours processing time while
Model B, 5 hours. The available production capacity for two models is 450 hours per
month.

Requirements:

a. Write the complete mathematical model for this case (5 points).

b. Identify the controllable and uncontrollable inputs (5 points).
c. Draw the flowchart of the input-output process for your model (10 points).
d. What are the optimal solution values for your variables? (5 points)

Answer:

a. Write the complete mathematical model for this case (5 points).

Max. 40x + 60y

s.t.
6x + 5y= 450
x ≥ 0, y ≥ 0

b. Identify the controllable and uncontrollable inputs (5 points).

• Controllable inputs: x & y

• Uncontrollable inputs:
a. Profit (40,60)
b. Labor hours (6,5)
c. Labor hour availability (450)
 c. Draw the flowchart of the input-output process for your model (10 points).

Uncontrollable Inputs
(Environmental Factors)

Profit: P40/U for x; P60/U for y

Labor-hours: 6/u for x; 5/u for y
450 Hours Production Capacity

Output
Controllable Inputs Mathematical Model
(Projected Results
(Decision Variables)

Max 40x + 60y Projected Profit and Time

Production Quantities:
s.t. Constraint
x and y
6x + 5y= 450 Or
x≥0 Profit= P5,400
{or, when values are known}.
y≥0 Time Used= 450
(x = 0) + (y = 90)

d. What are the optimal solution values for your variables? (5 points)

x= 0, y= 90; Profit = P5,400 (solution by trial and error)

Rows Decision Projected Decision Projected Total Total Feasible

Alternative Profit Alternative Profit Projecte Production Solution
(Production (x) (Production (y) d Profit Hours (Used hours
Qty.) Qty.) is equal to
(x) (y) 450)
1 0 0 0 0 0 0 no
2 30 1200 30 1800 3000 330 no
3 40 1600 40 2400 4000 440 no
4 55 2200 24 1440 3640 450 yes
5 15 600 72 4320 4920 450 yes
6 50 2000 30 1800 3800 450 yes
7 0 0 90 5400 5400 450 yes
8 30 1200 60 3600 4800 480 no