Once an aileron, elevon, or flap is produced, it is either sent to the distribution center (DC) or stored until the next period. There is a limit on the number of products (units) that can be kept in storage at the end of any given period because of the size of the storage area in each plant. A maximum of 40 units of all products combined can be stored in plant A and 60 units can be stored in plant B. Shipping and inventory costs are shown below. Unit Shipping Costs ($/unit) Product Plant A Plant B Aileron 10.40 11.20 Elevon 7.40 8.00 Flap 8.70 9.20 Inventory Holding Costs Product Unit Holding Cost ($/unit/period) Aileron 50.00 Elevon Flap 43.60 55.00 The sales department provided the following production requirements based on customer contracts and agreements that must be met throughout the next six periods of production. Production Requirements for the Six Period Planning Horizon (units/period) Product Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Aileron 60 100 140 160 180 190 Elevon 220 240 250 290 320 190 Flap 130 180 200 240 220 210 Supplemental demand can be created by advertising. Advertising in any given period has an effect on demand in future periods. The unit investment costs below reflect the cost to generate one unit of additional demand in that period plus the demand generated in future periods. IED Inc. had allocated an advertising budget of $100,000 for all six periods. Advertising Costs Additional Demand Generated (units/period) Product Unit Investment ($/unit) Period t Period t+1 Period t+2 Aileron Elevon 400.00 300.00 d 0.4 d 0.2 d d 0.4 d 0.2 d Flap 440.00 d 0.4 d 0.2 d Each unit produced has the following requirements based on the type of product (ailerons, elevons, or flaps) and the plant at which it is produced. These requirements are summarized below. Product Raw Materials and Labor Requirements Product Raw Material 1 Plant A Raw Material (lbs./unit) 2 (lbs./unit) Labor (hrs./unit) Raw Material 1 (lbs./unit) Plant B Raw Material 2 (lbs./unit) Labor ($/hour) Aileron 184.00 8.40 8.50 178.00 8.20 8.10 Elevon 220.00 0.00 6.90 215.00 0.00 6.80 Flap 168.00 10.60 10.10 160.00 9.80 9.60 Once an aileron, elevon, or flap is produced, it is either sent to the distribution center (DC) or stored until the next period. There is a limit on the number of products (units) that can be kept in storage at the end of any given period because of the size of the storage area in each plant. A maximum of 40 units of all products combined can be stored in plant A and 60 units can be stored in plant B. Shipping and inventory costs are shown below. Unit Shipping Costs ($/unit) Product Plant A Plant B Aileron 10.40 11.20 Elevon 7.40 8.00 Flap 8.70 9.20 Inventory Holding Costs Product Unit Holding Cost ($/unit/period) Aileron 50.00 Elevon Flap 43.60 55.00 The sales department provided the following production requirements based on customer contracts and agreements that must be met throughout the next six periods of production. Production Requirements for the Six Period Planning Horizon (units/period) Product Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Aileron 60 100 140 160 180 190 Elevon 220 240 250 290 320 190 Flap 130 180 200 240 220 210 Supplemental demand can be created by advertising. Advertising in any given period has an effect on demand in future periods. The unit investment costs below reflect the cost to generate one unit of additional demand in that period plus the demand generated in future periods. IED Inc. had allocated an advertising budget of $100,000 for all six periods. Advertising Costs Additional Demand Generated (units/period) Product Unit Investment ($/unit) Period t Period t+1 Period t+2 Aileron Elevon 400.00 300.00 d 0.4 d 0.2 d d 0.4 d 0.2 d Flap 440.00 d 0.4 d 0.2 d Each unit produced has the following requirements based on the type of product (ailerons, elevons, or flaps) and the plant at which it is produced. These requirements are summarized below. Product Raw Materials and Labor Requirements Product Raw Material 1 Plant A Raw Material (lbs./unit) 2 (lbs./unit) Labor (hrs./unit) Raw Material 1 (lbs./unit) Plant B Raw Material 2 (lbs./unit) Labor ($/hour) Aileron 184.00 8.40 8.50 178.00 8.20 8.10 Elevon 220.00 0.00 6.90 215.00 0.00 6.80 Flap 168.00 10.60 10.10 160.00 9.80 9.60