Question: You manage a production line that operates using a monthly production cycle. Five different products could be made this month. However, you only have

You manage a production line that operates using a monthly production cycle.

You manage a production line that operates using a monthly production cycle. Five different products could be made this month. However, you only have 500 hours of line capacity, so you must be careful which products you select to make in the production cycle. Making a product incurs two types of setup costs: (1) a material "tear down" cost (measured in dollars) and (2) downtime for line preparation (measured in hours). Any quantity up to the forecasted monthly demand can be sold. Additional production details are given in the table below: Monthly Demand Revenue (per unit) Production Cost (per unit) Set Up Cost Set Up Time Production Time (per unit) Product 1 1000 units $150 $60 $10000 25 hrs 1 hrs Product 2 1100 units $175 $70 $15000 15 hrs 12 hrs Product 3 1700 units $155 $60 $25000 0 hrs 13 hrs Product 4 1600 units $200 $100 $10000 10 hrs 15 hrs Product 5 1500 units $225 $110 $5000 30 hrs 16 hrs 1. Based on this information, design a monthly production schedule to maximize monthly profit. Your solution should identify which products to make and the quantities of each. (Assume the line is not currently set up to make any of these products; Set Optimality Gap to .1%)

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