Alan Industries is expanding its product line to include three new products: A, B, and C. These are to beproduced on the same production equipment, and the objective is to meet the demands for the threeproducts using overtime where necessary. The demand forecast for the next four months, in hoursrequired to make each product is:PRODUCTABCAPRIL900700800Regular timeOvertimeMAY700800600APRIL1,600800JUNE9001,000800Because the products deteriorate rapidly, there is a high loss in quality and, consequently, a high carryingcost when a product is made and carried in inventory to meet future demand. Each hour's productioncarried 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 timecost per hour.The number of production hours available for regular time and overtime isJULY1,3001,100950MAY1,500750Calculate the objective value using Excel Solver.Note: Do not round intermediate calculations.JUNE1,9001,130JULY2,140990

Given Details:ProductAprilMayJuneJulyA9007009001300B70080010001100C800600800950Regular…

Answered: Alan Industries is expanding its…

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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WAI is evaluating a new machine that reduces the machinetime needed for the standard corkscrew to 0.08 hour, but increasesthe machine time for the deluxe corkscrew to 0.40 hour.(a) Calculate the machine capacity needed for each period ifWAI uses the new machine.(b) Will the new machine prove benefi cial to WAI?
Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below. Employees Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Demand Q1 2,400 6,019,000 They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below. 30 70 units/employee/quarter Q2 2,200 $1,000/unit $200/unit/quarter $1,500/unit <= 25% of Reg. Production Q3 1,700 Q4 1,800 Hire Cost Fire Cost Subcontracting Cost Subcontracting Limit Inventory Cost Initial Inventory $1,200/employee $800/employee $1,800/unit 400 units maximum $100/unit/quarter 280 units Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this…
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The measure of production that considers historical and estimated future production levels and cyclical fluctuations is referred to as: Group of answer choices expected capacity normal capacity theoretical capacity practical capacity
The Donald Fertilizer Company produces industrial chemi-cal fertilizers. The projected manufacturing requirements (inthousands of gallons) for the next four quarters are 90, 60,90, and 140, respectively. A level workforce is desired, relyingonly on anticipation inventory as a supply option. Stock-outs and backorders are to be avoided, as are overtime andundertime.a. Determine the quarterly production rate required to meettotal demand for the year, and minimize the anticipationinventory that would be left over at the end of the year.Beginning inventory is 0.b. Specify the anticipation inventory that will be produced.c. Suppose that the requirements for the next four quartersare revised to 60, 90, 140, and 90, respectively. If total de-mand is the same, what level of production rate is needednow, using the same strategy as part (a)?
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