Question

Greenville Cabinets received a contract to produce speaker cabinets for a major speaker manufacturer. The contract calls for the production of 5,100 bookshelf speakers and 5,900 floor speakers over the next two months, with the following delivery schedule: Model Month 1 Month 2 Bookshelf 3,000 2,100 Floor 2,400 3,500 Greenville estimates that the production time for each bookshelf model is 0.6 hour and the production time for each floor model is 1 hour. The raw material costs are $19 for each bookshelf model and $21 for each floor model. Labor costs are $31 per hour using regular production time and $42 using overtime. Greenville has up to 3,300 hours of regular production time available each month and up to 1,900 additional hours of overtime available each month. If production for either cabinet exceeds demand in month 1, the cabinets can be stored at a cost of $14 per cabinet. For each product, determine the number of units that should be manufactured each month on regular time and on overtime to minimize total production and storage costs. If required, round your answers to the nearest whole number. If an amount is zero, enter "0". Use a software package LINGO or Excel Solver.

Answer 1

Answer:

For regular time manufacture :

Bookshelf month 1 = 3000

Month 2 = 2100

Floor. month 1 = 1500

Month 2 = 2040

For overtime manufacture:

Bookshelf month 1 = 0

Month 2 = 0

Floor. Month 1 = 900

Month 2 = 1460

For explanation see the picture attached