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Greenville Cabinets received a contract to produce cabinets for a major furniture distributor. The contract calls for the production of 3,300 small cabinets and
Greenville Cabinets received a contract to produce cabinets for a major furniture distributor. The contract calls for the production of 3,300 small cabinets and 4,100 large over the next two months, with the following delivery schedule Model Month 1 Month 2 Small 2,100 1,200 Large 1,500 2,600 Greenville estimates that the production time for each small cabinet is 0.7 hours and the production time for each large cabinet is 1 hour. The raw material costs are $10 for each small cabinet and $12 for each large cabinet. Labor costs are $22 per hour using regular production time and $33 using overtime. Greenville has up to 2,400 hours of regular production time available each month and up to 1,000 additional hours of overtime available each month. If production for either cabinet exceeds demand in month 1, the cabinets can be stored at a cost of $5 per cabinet. For each product, determine the number of units that should be manufactured each month on regular time and on overtime to minimize total production and storage costs. (Round your answers to the nearest integer. Let SaR = regular small cabinets for month 1, SbR = regular small cabinets for month 2, LaR regular large cabinets for month 1, LbR regular large cabinets for month 2, SaO = overtime small cabinets for month 1, Sbo = overtime small cabinets for month 2, LaO = overtime large cabinets for month 1, and LbO = overtime large cabinets for month 2) = = (SaR, SbR, LaR, LbR, SaO, SbO, LaO, LbO) = Total Production Cost = $
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