Question

g Greenville estimates that the production time for each bookshelf model is 0.8 hour and the production time for each floor model is 1 hour. The raw material costs are $17 for each bookshelf model and $19 for each floor model. Labor costs are $29 per hour using regular production time and $40 using overtime. Greenville has up to 3,100 hours of regular production time available each month and up to 1,700 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 $12 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".

Answer 1

MISSING INFORMATION:

Demand:

Model Month 1 Month 2 Total

Bookshelf 2,800 1,900 4,700

Floor 2,200 3,300 5,500

Answer:

2,800 and 1,900 for bookshelf

while 2,220 and 3,280 for Floor Model

Step-by-step explanation:

We need to use excel solver. We are going to define the total units, total labor hours and total materials cost. Then total storage cost and add the total cost

bookshelf floor model Subtotals

Units 2800 2220 (variable cell)

Hours 0.8 1

Total Hours 2240 2220 4460

Raw $17 $19

Total Raw $47600 $42180 $89780

Total Labor 3100 x 29 + (4460-3100) x $40 = $144,300

Storage 2800 - 2800 = 0 2220 - 2200 = 20 units

Storage Cost: 20 units x $12 = $ 420

Month Total cost: $234,320

Month 2:

Total needs less first month units

bookshelf floor model

Units 1900 3280

Hours 0.8 1

Total Hours 1520 3280 4,800

Raw $17 $ 19

Total Raw $32300 $62320 $94,620

Total Labor 3,100 x $ 29 + 1,700 x $ 40 = $157,900

Month Cost: $252,520

Total Cost $234,320 + $252,520 = $486,840‬