Determine the number of units tha should be manufactured

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Reference no: EM131955008

Greenville Cabinets received a contract to produce speaker cabinets for a major s manufacturer. The contract calls for the production of 3300 bookshelf speakers and 4100 floor 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 floor model is 1 hour. The raw material costs are $10 for each bookshelf model and $12 for each floor model.

Labor costs are S22 per hour using regular production time and $33 using overtime.

Greenville has up to 2400 hours of regular pro- duction 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 tha should be manufactured each month on regular time and on overtime to minimize total production and storage costs.

Reference no: EM131955008

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