Alan Industries is expanding its product line to include three new products: A, B, and C. These are to be produced on the same production equipment, and the objective is to meet the demands for the three products using overtime where necessary. The demand forecast for the next four months, in hours required to make each product is: JUNE 810 PRODUCT APRIL MAY JULY A 810 610 1,210 1,110 860 B 610 710 910 710 510 710 Because the products deteriorate rapidly, there is a high loss in quality and, consequently, a high carrying cost when a product is made and carried in inventory to meet future demand. Each hour's production carried into future months costs $3 per production hour for A, $4 for B, and $5 for C. Production can take place either during regular working hours or during overtime. Regular time is paid at $4 when working on A, $5 for B, and $6 for C. The overtime premium is 50 percent of the regular time cost per hour. The number of production hours available for regular time and overtime is Regular time Overtime APRIL 1,510 710 MAY 1,310 660 JUNE 1,810 910 JULY 2,050 1,050
Alan Industries is expanding its product line to include three new products: A, B, and C. These are to be produced on the same production equipment, and the objective is to meet the demands for the three products using overtime where necessary. The demand forecast for the next four months, in hours required to make each product is: JUNE 810 PRODUCT APRIL MAY JULY A 810 610 1,210 1,110 860 B 610 710 910 710 510 710 Because the products deteriorate rapidly, there is a high loss in quality and, consequently, a high carrying cost when a product is made and carried in inventory to meet future demand. Each hour's production carried into future months costs $3 per production hour for A, $4 for B, and $5 for C. Production can take place either during regular working hours or during overtime. Regular time is paid at $4 when working on A, $5 for B, and $6 for C. The overtime premium is 50 percent of the regular time cost per hour. The number of production hours available for regular time and overtime is Regular time Overtime APRIL 1,510 710 MAY 1,310 660 JUNE 1,810 910 JULY 2,050 1,050
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:Alan Industries is expanding its product line to include three new products: A, B, and C. These are to be produced on the same
production equipment, and the objective is to meet the demands for the three products using overtime where necessary. The demand
forecast for the next four months, in hours required to make each product is:
PRODUCT
APRIL
MAY
JUNE
JULY
1,210
1,110
860
A
810
610
810
610
710
910
710
510
710
Because the products deteriorate rapidly, there is a high loss in quality and, consequently, a high carrying cost when a product is made
and carried in inventory to meet future demand. Each hour's production carried into future months costs $3 per production hour for A,
$4 for B, and $5 for C.
Production can take place either during regular working hours or during overtime. Regular time is paid at $4 when working on A, $5
for B, and $6 for C. The overtime premium is 50 percent of the regular time cost per hour.
The number of production hours available for regular time and overtime is
APRIL
1,510
710
MAY
JUNE
JULY
Regular time
Overtime
1,310
660
1,810
910
2,050
1,050
Calculate the objective value using Excel Solver. (Do not round intermediate calculations.)
Objective value
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