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Q 2 . To calculate the project on - hand inventories, planned production, and available - to - promise inventory, we need to consider the

Q2. To calculate the project on-hand inventories, planned production, and available-to-promise inventory, we need to consider the current inventory, customer orders, and the forecasted demand for June and July.
Given information:
Forecasted demand for June: 120 pumps (30 pumps per week for 4 weeks)
Forecasted demand for July: 160 pumps (40 pumps per week for 4 weeks)
Current inventory: 64 pumps
Let's break down the calculations for each of the three components:
1. Project On-Hand Inventories:
This represents the total inventory available at the beginning of each month. To calculate the project on-hand inventories for June and July, we need to consider the current inventory and subtract the customer orders that have been committed (booked) and must be filled.
June:
Beginning Inventory: 64 pumps
Customer Orders: None mentioned.
Project On-Hand Inventory for June = Beginning Inventory - Customer Orders
=64 pumps -0 pumps
=64 pumps
July:
Beginning Inventory: Project On-Hand Inventory for June
Customer Orders: None mentioned.
Project On-Hand Inventory for July = Project On-Hand Inventory for June - Customer Orders
=64 pumps -0 pumps
=64 pumps
Explanation:
Therefore, the project on-hand inventories for both June and July are 64 pumps.
Planned Production
This represents the production needed to meet the forecasted demand for each month. We can calculate the planned production by subtracting the project's on-hand inventory from the forecasted demand for each month.
June:
Forecasted Demand: 120 pumps.
Project On-Hand Inventory: 64 pumps
Planned Production for June = Forecasted Demand - Project On-Hand Inventory =120 pumps -64 pumps
=56 pumps
July:
Forecasted Demand: 160 pumps.
Project On-Hand Inventory: 64 pumps
Planned Production for July = Forecasted Demand - Project On-Hand Inventory
=160 pumps -64 pumps
=96 pumps
Explanation:
Therefore, the planned production for June is 56 pumps, and for July is 96 pumps.
Q3. Explanation:
To formulate the objective function and constraints for the construction firm's decision-making problem, we need to maximize the total profit while considering the available resources. Let's define the decision variables and establish the constraints:
Decision Variables:
Let x be the number of model A houses to build.
Let y be the number of model B houses to build.
Objective Function:
The objective is to maximize the total profit.
Maximize:
Profit =10000x +20000y
Constraints:
Labor hours constraint:
4000x +10000y <=400000
Stone constraint:
2x +3y <=150
Lumber constraint:
2000x +2000y <=200000
Non-negativity constraint:
x >=0
y >=0
Explanation:
These constraints ensure that the firm does not exceed the available labor hours, stone, and lumber while maintaining non-negativity for the number of houses built.

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