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 ($/unit) Inventory Holding Costs Product Plant A Plant B Unit Holding Cost ($/unit/period) Product Aileron Aileron 10.40 11.20 50.00 Elevon 7.40 8.00 Elevon 43.60 Flap 8.70 9.20 Flap 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 5 160 180 Period 6 Aileron 60 100 140 190 Elevon 220 240 250 190 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 $100,000 for all six periods. Advertising Costs Product Additional Demand Generated (units/period) Period t Unit Investment ($/unit) Period t+1 Period t+2 Aileron 400.00 d 0.4 d 0.2 d Elevon 300.00 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 Plant A Plant B Product Raw Material 1 Raw Material Labor Raw Material Raw Material Labor ($/hour) (lbs./unit) 2 (lbs./unit) 2 (lbs./unit) (hrs./unit) 8.50 1 (lbs./unit) 178.00 Aileron 184.00 8.40 8.20 8.10 Elevon 220.00 0.00 6.90 215.00 0.00 6.80 Flap 168.00 10.60 10.10 160.00 9.80 9.60 Once an aileron, elevon, or flap is produced, it is either sent to the distribution center (DC) or stored until the next period. There is a limit on the number of products (units) that can be kept in storage at the end of any given period because of the size of the storage area in each plant. A maximum of 40 units of all products combined can be stored in plant A and 60 units can be stored in plant B. Shipping and inventory costs are shown below. Unit Shipping Costs ($/unit) Inventory Holding Costs Product Plant A Plant B Unit Holding Cost ($/unit/period) Product Aileron Aileron 10.40 11.20 50.00 Elevon 7.40 8.00 Elevon 43.60 Flap 8.70 9.20 Flap 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 5 160 180 Period 6 Aileron 60 100 140 190 Elevon 220 240 250 190 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 $100,000 for all six periods. Advertising Costs Product Additional Demand Generated (units/period) Period t Unit Investment ($/unit) Period t+1 Period t+2 Aileron 400.00 d 0.4 d 0.2 d Elevon 300.00 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 Plant A Plant B Product Raw Material 1 Raw Material Labor Raw Material Raw Material Labor ($/hour) (lbs./unit) 2 (lbs./unit) 2 (lbs./unit) (hrs./unit) 8.50 1 (lbs./unit) 178.00 Aileron 184.00 8.40 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