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 A 790 590 790 JULY 1,190 B 590 690 890 с 690 490 690 1,090 840 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 1,490 MAY 1,380 690 640 JUNE 1,790 JULY 2,000 890 940 Calculate the objective value using Excel Solver. (Do not round intermediate calculations.) Objective value

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Chapter11: Linear Optimization Models
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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
APRIL
MAY
JUNE
A
790
590
790
JULY
1,190
B
590
690
890
с
690
490
690
1,090
840
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
1,490
MAY
1,380
690
640
JUNE
1,790
JULY
2,000
890
940
Calculate the objective value using Excel Solver. (Do not round intermediate calculations.)
Objective value
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 A 790 590 790 JULY 1,190 B 590 690 890 с 690 490 690 1,090 840 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 1,490 MAY 1,380 690 640 JUNE 1,790 JULY 2,000 890 940 Calculate the objective value using Excel Solver. (Do not round intermediate calculations.) Objective value
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