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 1,320 1,120 JULY APRIL 920 720 MAY 720 B20 620 JUNE 920 1,020 a 20 820 970 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 elther 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 1,620 840 MAY 1,520 770 JUNE 1,920 1,150 JULY 2,190 1,010 Calculate the objective value using Excel Solver (Do not round intermediate calculations.) Answer is complete but not entirely correct. Objective value 6 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 1,320 1,120 JULY APRIL 920 720 MAY 720 B20 620 JUNE 920 1,020 a 20 820 970 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 elther 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 1,620 840 MAY 1,520 770 JUNE 1,920 1,150 JULY 2,190 1,010 Calculate the objective value using Excel Solver (Do not round intermediate calculations.) Answer is complete but not entirely correct. Objective value 6
