190 PR 5.20. Develop and solve a model for the SkAIZ company planig P it compare with your spreadsheet solution? What drawbacks, if any, does it have 5.21. Generic, Inc., produces a variety of generic prescription drugs, which are sold to chain pharma- cies. All drugs are in tablet form and are made on the same production line. Currently, the plant is operating two shifts per day, five days per week, and demand for the next four months is 420 350, 410, and 315 million tablets. Each shift can produce 200 million tablets per month at a cost of $0.50 per tablet. Overtime can be used to produce tablets at a 65 percent premium. Only two hours per day of overtime can be used, because of maintenance that must be performed on th production equipment. Current inventory is two million tablets, and Generic wants three million in inventory at the end of month 4. It costs $15,000 to hold one million tablets in invent one month. Because the pharmacies are ordering for their distribution centers, most orders ca be backordered. Contracts specify a 30 percent penalty for late deliveries. ory for Develop an optimal 5.22. Suppose Generic (Problem 5.21) can modify their production line to get a 15 percent increase in aggregate production plan for the next four months. capacity. How much could they afford to pay for the upgrade ana recover the cost in one year? List all assumptions you make to answer the question. 4. Solve Exercise 5.22 from the textbook by Sipper and Bulfin. 190 PR 5.20. Develop and solve a model for the SkAIZ company planig P it compare with your spreadsheet solution? What drawbacks, if any, does it have 5.21. Generic, Inc., produces a variety of generic prescription drugs, which are sold to chain pharma- cies. All drugs are in tablet form and are made on the same production line. Currently, the plant is operating two shifts per day, five days per week, and demand for the next four months is 420 350, 410, and 315 million tablets. Each shift can produce 200 million tablets per month at a cost of $0.50 per tablet. Overtime can be used to produce tablets at a 65 percent premium. Only two hours per day of overtime can be used, because of maintenance that must be performed on th production equipment. Current inventory is two million tablets, and Generic wants three million in inventory at the end of month 4. It costs $15,000 to hold one million tablets in invent one month. Because the pharmacies are ordering for their distribution centers, most orders ca be backordered. Contracts specify a 30 percent penalty for late deliveries. ory for Develop an optimal 5.22. Suppose Generic (Problem 5.21) can modify their production line to get a 15 percent increase in aggregate production plan for the next four months. capacity. How much could they afford to pay for the upgrade ana recover the cost in one year? List all assumptions you make to answer the question. 4. Solve Exercise 5.22 from the textbook by Sipper and Bulfin