The Silver Star Bicycle Company will be manufacturing mens and womens models of its Easy-Pedal 10-speed bicycle during the next two months, and the company

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The Silver Star Bicycle Company will be manufacturing men’s and women’s models of its Easy-Pedal 10-speed bicycle during the next two months, and the company would like a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 men’s and 125 women’s models to be shipped during the first month and 200 men’s and 150 women’s models to be shipped during the second month. Additional data are shown in the Exhibit 14.29.

Each month, 3000 hours of manufacturing labor and 1,000 hours of assembly labor are available. The company charges monthly inventory at the rate of 2 percent of the production cost based on the inventory levels at the end of the month. Silver Star would like to have at least 25 units of each model in inventory at the end of the two months. Formulate this as a linear optimization model but do not solve (see Supplement D).

EXHIBIT 14.29 Data for Problem 30, Silver Star Bicycle Company Model Men's Women's Production Costs $40 $30 Labor Labor Required for Required for Manufacturing Assembly (hours) (hours) 10 3 8 2 Current Inventory 20 30