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 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 GMA is used in the client's food processors and its model GMB 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 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 units of GMA and units of GMB in inventory at the end of Aprl, as May demand is expected to be high
Carrying cost for inventory is $ per unit per month for GMA and $ per unit per month for GMB Estimate the monthly inventory as the ending inventory each month
The company has a nolayoff policy, so they want to maintain a production schedule that would require from to hours of labor each month
The GMA requires hours of labor per unit and the GMB requires labor hours per unit
The warehouse is limited to an inventory of units of GMA and GMB combined at the end of each month
Production costs are $ per unit for GMA and $ per unit for GMB however each of these costs will increase by on March due to a new labor agreement
Determine how many units of each product Continental should produce each month in order to
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