1) Complete the LP model using Excel's Solver in excel and by using the correct LP model formulation

1.1) Finding each month and product types: production/inventory schedule, ending inventory after production, min/max labor hour limits and actual labor hours used

2) Compile a cost summary sheet that includes production cost, inventory cost, total monthly cost, and total production cost (month/period).

Recall Silver Star Bicycle Company (page 51 of your course packet) that will be manufacturing both men's and women's models for its Easy-Pedal 10-speed bicycles during the next 2 months. The company 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 200 men's and 150 women's models to be shipped during the second month. Additional data are shown. Model Production Cost Manufacturing Labor Regt (hrs) Assembly Labor Regt (hrs) Current Inventory Men's $120 2.0 1.5 20 Women's $90 1.6 1.0 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 level at the end of the month. The company would like to have least 25 units of each model in inventory at the end of the 2 months. Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. Objective function value is $67,156.03. Mij = number of men bicycle I (produced/inventory) in month j Wij = number of women biycle ! (produced/inventory) in month j Where I = 1 (production), 2(inventory) ) = 1, 2 MIN 120(M11 + M12) +90(W11 + W12) + (0.02 (120)(M21 + M22) + (0.02)(90)(W21 + W22) S.T. Conservation S.T: 20+ M11 = 150+ M21 (month 1) 30 + W11 = 125 + W21 (month 1) M21 + M12 = 200+ M22 (month 2) W21 + W12 = 150 + W22 (month 24 M22 >= 25 W22 >= 25 Labor policy S.T: 3.5 M11 + 2.6 W11 >= 1000-100 (month 1) 3.5 M11 + 2.6 W11 = 3.5 M11 + 2.6W11 - 100 (month 2) 3.5 M12 +2.6W12 0