Decorum, Inc., manufactures high-end ceiling fans. Their sales are seasonal with higher demand in the warmer summer months. Typically, sales average 400 units per month. However, in the hot summer months (June, July, and August), sales spike up to 600 units per month. Decorum can produce up to 500 units per month at a cost of $300 each. By bringing in temporary workers, Decorum can produce up to an additional 75 units at a cost of $350 each. Decorum sells the ceiling fans for $500 each. Decorum can carry inventory from one month to the next, but at a cost of $20 per ceiling fan per month. Decorum has 25 units in inventory at the start of January. Assuming Decorum must produce enough ceiling fans to meet demand, how many ceiling fans should Decorum produce each month (using their regular labor force and/or temporary workers) over the course of the next year so as to maximize their total profit? We have a total of type your answer...
Decorum, Inc., manufactures high-end ceiling fans. Their sales are seasonal with higher demand in the warmer summer months. Typically, sales average 400 units per month. However, in the hot summer months (June, July, and August), sales spike up to 600 units per month. Decorum can produce up to 500 units per month at a cost of $300 each. By bringing in temporary workers, Decorum can produce up to an additional 75 units at a cost of $350 each. Decorum sells the ceiling fans for $500 each. Decorum can carry inventory from one month to the next, but at a cost of $20 per ceiling fan per month. Decorum has 25 units in inventory at the start of January. Assuming Decorum must produce enough ceiling fans to meet demand, how many ceiling fans should Decorum produce each month (using their regular labor force and/or temporary workers) over the course of the next year so as to maximize their total profit? We have a total of type your answer...
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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