Question: Continental Motors Scenario NOTE: This is a challenge problem. It is only worth 1 0 points, and you can earn partial credit for progress. This

Continental Motors Scenario
NOTE: This is a challenge problem. It is only worth 10 points, and you can earn partial credit for progress. This problem will give students who are learning the material very well a chance to demonstrate their skills.
Continental Motors manufactures two different electric motors for sale under contract to a client. Its model GM3A is used in the client's food processors and its model GM3B is used in the client's blenders. Three times each year the client contracts Continental to place a monthly order for each of the coming four months. Continental has just received the January - April order and must begin its own 4-month production plan. The number of motors the client ordered is shown in the table below.
Continental must consider several factors:
- They must meet demand for each of the motors in each of the months
- They want to have 450 units of GM3A and 300 units of GM3B in inventory at the end of Aprl, as May demand is expected to be high
- Carrying cost for inventory is \(\$ 0.36\) per unit per month for GM3A and \(\$ 0.26\) per unit per month for GM3B. Estimate the monthly inventory as the ending inventory each month
- The company has a no-layoff policy, so they want to maintain a production schedule that would require from 2,240 to 2,560 hours of labor each month
- The GM3A requires 1.3 hours of labor per unit and the GM3B requires 0.9 labor hours per unit
- The warehouse is limited to an inventory of 3,300 units (of GM3A and GM3B combined) at the end of each month
- Production costs are \(\$ 20\) per unit for GM3A and \(\$ 15\) per unit for GM3B, however each of these costs will increase by \(10\%\) on March 1 due to a new labor agreement
Determine how many units of each product Continental should produce each month in order to
Continental Motors Scenario NOTE: This is a

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