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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 A APRIL 800 600 700 Regular time Overtime MAY 600 700 500 Objective value 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 Model B, and $5 for Model C. APRIL 1,500 700 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 JUNE 800 MAY 1,300 650 Calculate the objective value using Excel Solver. 900 700 JULY 1,200 1,100 850 JUNE 1,800 900 JULY 2,000 1,000

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 A APRIL 800 600 700 Regular time Overtime MAY 600 700 500 Objective value 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 Model B, and $5 for Model C. APRIL 1,500 700 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 JUNE 800 MAY 1,300 650 Calculate the objective value using Excel Solver. 900 700 JULY 1,200 1,100 850 JUNE 1,800 900 JULY 2,000 1,000

Practical Management Science
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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Problem 8-12 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 A B C APRIL 800 Regular time Overtime 600 700 Objective value MAY 600 700 500 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 Model B, and $5 for Model 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 1,500 700 JUNE 800 900 700 MAY 1,300 650 Calculate the objective value using Excel Solver. JULY 1,200 1,100 850 JUNE 1.800 900 JULY 2,000 1,000
Transcribed Image Text:Problem 8-12 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 A B C APRIL 800 Regular time Overtime 600 700 Objective value MAY 600 700 500 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 Model B, and $5 for Model 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 1,500 700 JUNE 800 900 700 MAY 1,300 650 Calculate the objective value using Excel Solver. JULY 1,200 1,100 850 JUNE 1.800 900 JULY 2,000 1,000
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