Problem 4-19 (Algorithmic) The Silver Star Bicycle Company will be manufacturing both men's and women's models of its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop 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 220 men's and 170 women's models to be shipped during the second month. Additional data are shown: Model Men's Women's Production Costs $130 $100 Labor Requirements (hours) Assembly 1.2 1 Manufacturing 2.3 1.6 Current Inventory 30 40 Last month the company used a total of 1000 hours of labor. The company's labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 35 units of each model in inventory at the end of the two months. a. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. What inventories will be maintained, and what are the monthly labor requirements? If required, round your answers to the nearest whole number. Production schedule: The optimal solution is to produce women's model in month 1, and Total Cost = $ Month 1 Month 2 Previous month Month 1 84654 Month 2 Inventory Schedule Labor Levels 46 Men's 25 Men's 1000 hours 985 hours 1082 hours 196 of the men's model in month 1, 175 of the women's model in month 2. 0 Women's 25 Women's 179 of the men's model in month 2, 115 units of the b. If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? If required, round your answers to the nearest whole number. Production schedule: The optimal solution is to produce women's model in month 1, and Total Cost = $ How much will the cost increase? $ of the men's model in month 1, of the women's model in month 2. of the men's model in month 2, units of the Problem 4-19 (Algorithmic) The Silver Star Bicycle Company will be manufacturing both men's and women's models of its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop 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 220 men's and 170 women's models to be shipped during the second month. Additional data are shown: Model Men's Women's Production Costs $130 $100 Labor Requirements (hours) Assembly 1.2 1 Manufacturing 2.3 1.6 Current Inventory 30 40 Last month the company used a total of 1000 hours of labor. The company's labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 35 units of each model in inventory at the end of the two months. a. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. What inventories will be maintained, and what are the monthly labor requirements? If required, round your answers to the nearest whole number. Production schedule: The optimal solution is to produce women's model in month 1, and Total Cost = $ Month 1 Month 2 Previous month Month 1 84654 Month 2 Inventory Schedule Labor Levels 46 Men's 25 Men's 1000 hours 985 hours 1082 hours 196 of the men's model in month 1, 175 of the women's model in month 2. 0 Women's 25 Women's 179 of the men's model in month 2, 115 units of the b. If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? If required, round your answers to the nearest whole number. Production schedule: The optimal solution is to produce women's model in month 1, and Total Cost = $ How much will the cost increase? $ of the men's model in month 1, of the women's model in month 2. of the men's model in month 2, units of the
