Alan Industries is expanding its product line to include three new products: A, B, and C. These
Question:
Because the products deteriorate rapidly, there is a high loss in quality and, consequently, a high carrying cost when a product is made and carried in inventory to meet future demand. Each hours production carried into future months costs $ 3 per production hour for A, $ 4 for Model B, and $ 5 for Model C. Production can take place either during regular working hours or during overtime. Regular time is paid at $ 4 when working on A, $ 5 for 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 is
Set up the problem in a spreadsheet and an optimal solution using the Excel Solver. Appendix A describes how to use the ExcelSolver.
Step by Step Answer:
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase