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A linear programming computer package is needed. The Silver Star Bicycle Company will be manufacturing both men's and women's models for its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop a production schedule indicating how many bicydes of each model should be produced in each month. Current demand forecasts call for 150 men's and 125 women's models shipped during the second month. Additional data are shown. be shipped during the first month and 200 men's and 150 women's models to be Labor Requirements (hours) Model Production Costs Current Inventory Manufacturing Assembly Men's $120 2.0 1.5 20 Women's $90 1.6 1.0 30 Last month the company used a total of 1,000 hours of labor. The company's labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. Only integer amounts of bicycles can be produced. (a) Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. men's model in month 1 63 bicycles X women's model in month 1 bicycles X men's model in month 2 25 bicycles X women's model in month 2 25 bicycles X Total Cost $ 67,156.25 What inventories will be maintained? Inventory Schedule men's model in month 1 bicycles women's model in month 1 bicycles men's model in month bicycles women's model in month 2 bicycles What are the monthly labor requirements? previous month hrs month 1 month 2 hrs (b) If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? men's model in month 1 bicydes women's model in month 1 bicycles men's model in month 2 bicycles women's model in month 2 bicycles Total Cost $67,175.06 How much will the cost increase? $ 19.03 A linear programming computer package is needed. The Silver Star Bicycle Company will be manufacturing both men's and women's models for its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop a production schedule indicating how many bicydes of each model should be produced in each month. Current demand forecasts call for 150 men's and 125 women's models shipped during the second month. Additional data are shown. be shipped during the first month and 200 men's and 150 women's models to be Labor Requirements (hours) Model Production Costs Current Inventory Manufacturing Assembly Men's $120 2.0 1.5 20 Women's $90 1.6 1.0 30 Last month the company used a total of 1,000 hours of labor. The company's labor relations policy will not allow the combined total hours of labor (manufacturing plus assembly) to increase or decrease by more than 100 hours from month to month. In addition, the company charges monthly inventory at the rate of 2% of the production cost based on the inventory levels at the end of the month. The company would like to have at least 25 units of each model in inventory at the end of the two months. Only integer amounts of bicycles can be produced. (a) Establish a production schedule that minimizes production and inventory costs and satisfies the labor-smoothing, demand, and inventory requirements. men's model in month 1 63 bicycles X women's model in month 1 bicycles X men's model in month 2 25 bicycles X women's model in month 2 25 bicycles X Total Cost $ 67,156.25 What inventories will be maintained? Inventory Schedule men's model in month 1 bicycles women's model in month 1 bicycles men's model in month bicycles women's model in month 2 bicycles What are the monthly labor requirements? previous month hrs month 1 month 2 hrs (b) If the company changed the constraints so that monthly labor increases and decreases could not exceed 50 hours, what would happen to the production schedule? men's model in month 1 bicydes women's model in month 1 bicycles men's model in month 2 bicycles women's model in month 2 bicycles Total Cost $67,175.06 How much will the cost increase? $ 19.03