A linear programming computer package is needed. The Silver Star Bicycle Company will be manufacturing both men's and women's models for its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 men's and 125 women's models to be shipped during the first month and 200 men's and 150 women's models to be shipped during the second month. Additional data are shown. Model Men's Women's Production Costs men's model in month 1 women's model in month 1 $120 men's model in month 2 $90 Labor Requirements (hours) Assembly Manufacturing 2.0 1.6 bicycles 1.5 Last month the company used a total of 1,000 hours of labor. The company's labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. Only integer amounts of bicycles can be produced. (a) Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. bicycles bicycles 1.0 Current Inventory 20 30
A linear programming computer package is needed. The Silver Star Bicycle Company will be manufacturing both men's and women's models for its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 men's and 125 women's models to be shipped during the first month and 200 men's and 150 women's models to be shipped during the second month. Additional data are shown. Model Men's Women's Production Costs men's model in month 1 women's model in month 1 $120 men's model in month 2 $90 Labor Requirements (hours) Assembly Manufacturing 2.0 1.6 bicycles 1.5 Last month the company used a total of 1,000 hours of labor. The company's labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. Only integer amounts of bicycles can be produced. (a) Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. bicycles bicycles 1.0 Current Inventory 20 30
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:A linear programming computer package is needed.
The Silver Star Bicycle Company will be manufacturing both men's and women's models for its Easy-Pedal 10-speed bicycles during the next two months.
Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call
for 150 men's and 125 women's models to be shipped during the first month and 200 men's and 150 women's models to be shipped during the second month.
Additional data are shown.
Model
Men's
Women's
Production Costs
men's model in month 1
women's model in month 1
$120
men's model in month 2
$90
Labor Requirements (hours)
Assembly
Manufacturing
2.0
1.6
bicycles
1.5
Last month the company used a total of 1,000 hours of labor. The company's labor relations policy will not allow the combined total hours of labor (manufacturing plus
assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the
production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the
two months. Only integer amounts of bicycles can be produced.
(a) Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements.
bicycles
bicycles
1.0
Current Inventory
20
30
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