raw materials and labour

Chorley Fabrics Ltd (CFL) manufacture a range of 10 products. These products are processed by five machines and consist of two raw materials.

Data on machine time, material and labour requirements are available for each each product as are data on availabilities of machines, raw materials and labour.

Each product has a maximum market demand and the company has certain contractual obligations to fulfil on a weekly basis.

You are given an Excel spreadsheet model of this problem together with the solution and sensitivity output.

Write a detailed management report based on the sensitivity output highlighting the optimal profit and how this can be achieved. Include in your report a discussion of the implications of changes in profit levels for each product and changes in availabilities of resources, contractual obligations etc.

Give advice to management as to how best to expand their activities with a view to increasing profit.
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raw materials and labour