Question
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
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 160 men's and 135 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:
Men's: Production Cost $140, Manufacturing 1.8 hours, Assembly 1.7 hours, Current Inventory 20
Women's: Production Cost $110, Manufacturing 1.6 hours, Assembly 1 hour, Current Inventory 30
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 25 units of each model in inventory at the end of the two months.
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