I changed the quantity of the products:
Gentlemen from 16 to 30 pieces, the total min. is 500 and the profit is 1500
Ladies from 40 to 35 pieces, the total min. is 580 and the profit is 2625
So the comany’s total profit would be 4125.
We know that the comany’s total capacity for cutting and also knitting in mins is 480. But after my changes, the Total mins. now exceeds the capacity of the company. This means that they would not be able to produce.
So after my quantitative changes, this exceeds the capacity of the company but this increased the overall profit for the company. We can see that the price of the women’s hats is higher than gentlemen’s. Because of that the logical thing would be to make and sell more women’s hats if there is a higher demand.
After my changes, we can see that it takes almost the same time to produce one hat for both men’s and women’s hats because:
So, based on that, I would suggest that the company should increase their capacity, maybe invest in new equipment, machinery or hire more employees, analyse the workflow or optimizing pricing strategies to maximize revenue.