Case 1 : Decision dilhemma for STAR Mattresses Ltd.

STAR Mattresses Ltd. Is a leading manufacturer of Pillows and curtains in the state of Andhra Pradesh. The management is aware that a piece of pillow requires 2 meters of cloths while curtain needs 1 meter. The requirement of Labour hours for the production of pillow and curtain are 1 hour and 2 hours respectively. In this particular month due to strike at textile industry, company will get only 800 meters of cloths on any day. Co. acquires 100 labours working 10 hours a day. The pillow and curtain will be sold at Rs. 11 and Rs. 6 respectively.

Mohsin, the head of Pillow production department argues that the company should manufacture as many pillows as they can, he argues that the pillow used to provide more profit margins to the company and hence pillow production will be beneficial to company to increase its revenue.

Farhan, the head of curtains department argues that the cloth requirement for curtain is less and hence it reduces the cost of production and ultimately increases the profit for the company.

Question:-

1. What will be revenue in case if company accept the proposal of Mr. Mohsin?2. What will be revenue in case if company accept the proposal of Mr. Farhan?3. What will be revenue in case of Optimum solution?

Case 2 : Golden Mine Ltd.

Golden mine is engaged in activity of mining at Uttranchal. Mr. Minocoal, Manager of Coal mining decides to dig only coal mines that yields a profit of Rs. 1200 per tones of coal. While Mr. Minoiron, Manager of Iron mining decides to dig only Iron mines that yields a profit of Rs. 1500 per tones of Iron ore. Golden mine has only 500 workers working for 8 hours a day and 10,000 liters of diesel for machines used in mining. It is known that the one tone of Coal requires 20 working hours and 10 liters of diesel while one tone of Iron requires 15 working hours and 15 liters of diesel.

Question:-

1. What will be revenue in case fi company accept proposal of Mr. Minocoal?2. What will be revenue in case fi company accept proposal of Mr. Minoiron?3. What will be revenue in case fi company accept proposal of Mr. Minocoal?