Optimizing Oz Jeans Manufacturing Costs: Mydney & Selbourne

In summary, Oz Jeans has two factories, one in Mydney and one in Selbourne. The fixed costs for the Mydney factory are \$28 000 per month and the cost of producing each pair of jeans is \$30. The fixed costs for the Selbourne factory are \$35 200 per month and the cost of producing each pair of jeans is \$24. In order to manufacture 6000 pairs of jeans, the production order for the Mydney factory is 2400 and the production order for the Selbourne factory is 3200, resulting in a total cost of \$120 000 for each factory. The solution for calculating the production orders is obtained by setting the cost equations for each factory equal to each other and solving
  • #1
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Oz Jeans has factories in Mydney and Selbourne. At the Mydney factory, fixed costs
are \$28 000 per month and the cost of producing each pair of jeans is \$30. At the Selbourne
factory, fixed costs are \$35 200 per month and the cost of producing each pair of jeans is $24.
During the next month Oz Jeans must manufacture 6000 pairs of jeans. Calculate the production order
for each factory, if the total manufacturing costs
for each factory are to be the same.

I have made the Costs equations equal to solve for ‘n’amount of jeans to get 1200. I.e 28000+30n = 35200+24n, then substituted these back into the Cost equations for each factory. The Answer says 2400 and 3200 which gives the 6000 in thequestion, but I can’t find how they got it..?

 
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  • #2
The equation is
\[
28\,000+30x = 35\,200+24(6000-x).
\]
The solution is $x=2800$, so $6000-2800=3200$.
 
  • #3
I found it.

a+b=6000
and
30a+28000 = 24y+35200

gives the solution.
 

FAQ: Optimizing Oz Jeans Manufacturing Costs: Mydney & Selbourne

What is the goal of optimizing Oz Jeans manufacturing costs?

The goal of optimizing Oz Jeans manufacturing costs is to reduce the overall expenses incurred in the production process while maintaining the quality and efficiency of the jeans. This can help the company increase profits and stay competitive in the market.

How can the manufacturing costs of Oz Jeans be reduced?

There are several ways to reduce the manufacturing costs of Oz Jeans, such as streamlining the production process, negotiating better deals with suppliers, using cost-effective materials, and implementing efficient inventory management systems. Conducting a thorough cost analysis can also help identify areas where costs can be cut.

What are some potential challenges in optimizing manufacturing costs for Oz Jeans?

Some potential challenges in optimizing manufacturing costs for Oz Jeans include resistance to change from employees, finding the right balance between cost reduction and maintaining quality, and potential disruption to the supply chain. There may also be regulatory and legal considerations to take into account.

How can data and technology be utilized to optimize Oz Jeans manufacturing costs?

Data and technology can play a crucial role in optimizing Oz Jeans manufacturing costs. By collecting and analyzing data on production processes, inventory levels, and supplier performance, the company can identify areas for improvement and make data-driven decisions. Automation and digital tools can also help streamline processes and reduce human error, leading to cost savings.

What are the potential benefits of optimizing manufacturing costs for Oz Jeans?

The potential benefits of optimizing manufacturing costs for Oz Jeans include increased profitability, improved efficiency and productivity, better control over the supply chain, and the ability to offer competitive prices to customers. It can also help the company become more sustainable and environmentally friendly by reducing waste and energy consumption.

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