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Greenville Cabinets received a contract to produce speaker cabinets for a major

ID: 444125 • Letter: G

Question

Greenville Cabinets received a contract to produce speaker cabinets for a major speaker manufacturer. The contract calls for the production of 3300 bookshelf speakers and 4100 oor speakers over the next two months, with the following delivery schedule:

Model

Month 1

Month 2

Bookshelf

2100

1200

Floor

1500

2600

Greenville estimates that the production time for each bookshelf model is 0.7 hour and the production time for each oor model is 1 hour. The raw material costs are $10 for each bookshelf model and $12 for each oor model. Labor costs are $22 per hour using regular production time and $33 using overtime. Greenville has up to 2400 hours of regular production time available each month and up to 1000 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 $5 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.

Model

Month 1

Month 2

Bookshelf

2100

1200

Floor

1500

2600

Explanation / Answer

Decision variables: Regular

Model             Month 1            Month 2

Bookshelf          B1R               B2R

Floor                  F1R               F2R

Decision variables: Overtime

Model           Month1         Month 2

Bookshelf       B1O           B2O

Floor                F1O           F2O

Labor costs per unit

Model                       Regular                  Overtime

Bookshelf           .7 (22) = 15.40          .7 (33) = 23.10

Floor                   1 (22) = 22                1 (33) = 33

IB = Month 1 ending inventory for bookshelf units

IF = Month 1 ending inventory for floor model

Objective function

Min 15.40 B1R + 15.40 B2R + 22 F1R + 22 F2R + 23.10 B1O + 23.10 B2O + 33 F1O + 33 F2O + 10 B1R + 10 B2R + 12 F1R + 12 F2R + 10 B1O + 10 B2O + 12 F1O + 12 F2O + 5 IB + 5 IF

or

Min 25.40 B1R + 25.40 B2R + 34 F1R + 34 F2R + 33.10 B1O + 33.10 B2O + 45 F1O + 45 F2O + 5 IB + 5 IF

s.t.

.7 B1R + 1 F1R < 2400                    Regular time: month 1

.7 B2R + 1 F2R < 2400                    Regular time: month 2

.7B1O + 1 F1O < 1000                    Overtime: month 1

.7B2O + 1 F2O < 1000                    Overtime: month 2

B1R + B1O - IB = 2100                     Bookshelf: month 1

IB + B2R + B2O = 1200                    Bookshelf: month 2

F1R + F1O - IF = 1500                     Floor: month 1

IF + F2R + F2O = 2600                    Floor: month 2