Alan Industries is expanding its product line to include three new products: A, B, and C. These are to be produced on the sameproduction equipment, and the objective is to meet the demands for the three products using overtime where necessary. The demandforecast for the next four months, in hours required to make each product is:PRODUCTABсAPRIL890690790Regular timeOvertimeMAY690790590Because the products deteriorate rapidly, there is a high loss in quality and, consequently, a high carrying cost when a product is madeand 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.Objective valueJUNE890990790Production can take place either during regular working hours or during overtime. Regular time is paid at $4 when working on A, $5for 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 isAPRIL1,590790JULY2,090980Calculate the objective value using Excel Solver. (Do not round intermediate calculations.)JULY1,2901,090940MAY1,450740JUNE1,8901,120

Demand forecasting helps the organization in allocating resources efficiently. The allocation of…

Answered: Alan Industries is expanding its…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter12: Queueing Models

Section: Chapter Questions

Problem 59P

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