KNOT, Inc. Case

KNOT, Inc., a nationally known manufacturer of menswear, produces four varieties of neckties. One is an expensive all-silk tie, one is an all-polyester tie, and two are blends of polyester and cotton. The following table illustrates the cost and availability of the three materials used in the production process for the four different neckties.

The firm has fixed contracts with several major department store chains to supply ties. The contracts require that KNOT supply a minimum quantity of each tie but allow for a larger demand if KNOT chooses to meet that demand. The following table summarizes the contract demand for each of the four styles of neckties, the selling price per tie, and the fabric requirements of each variety.

Your team has been hired by the CEO of KNOT, Inc., Martha Glamour, to develop a monthly production plan for each of these four styles of ties. In other words, the CEO wants to know the monthly production quantities of each variety in order to maximize their profit.

Directions: This case study can be done either by individually or by a team. If you want to do it by a team, choose five (maximum) or less people for your team. Prepare a three or four-page (maximum) business memo to the CEO, outlining your analyses, explanations, and conclusions. Submit your business memo on April 30 (Thursday) by 2 pm. (No Exception.) Make sure to include your names and roster numbers on your

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business memo. You are required to write down the equations (LP model) representing this problem and to use Excel Solver to develop a production plan for this case. Include LP model and Excel Solver answer report at the end of your business memo as your supporting material.

Use the memo writing guidelines from the course website as your reference. This guideline is posted under the "case" on the "course materials". Do not simply follow the guideline. Your business memo should be clear, in detail, professional, and to the point. Along with your thorough analysis, organization and flow of paragraphs and sentences, clarity and correctness, and your written presentation are important in the evaluation.

Price: $7.84

Solution: The downloadable solution consists of 4 pages, 384 words and 2 charts.
Deliverable: Word Document