Question
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
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 | JULY |
A | 810 | 610 | 810 | 1,210 |
B | 610 | 710 | 910 | 1,110 |
C | 710 | 510 | 710 | 860 |
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 hours 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 | MAY | JUNE | JULY | |
Regular time | 1,510 | 1,310 | 1,810 | 2,050 |
Overtime | 710 | 660 | 910 | 1,050 |
Calculate the objective value. (Do not round intermediate calculations.) |
Objective value |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started