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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
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 900 700 700 800 800 600 900 1,000 800 JULY 1,300 1,100 950 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, S5 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 1,600 MAY 1,500 800 750 JUNE 1,900 JULY 2,140 1,130 990 Calculate the objective value using Excel Solver. (Do not round intermediate calculations.) Objective value
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