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A manufacturing company produces two types of products: A and B. The company has agreed to deliver the products on the schedule shown in Table 34. The company has two assembly lines, 1 and 2, with the available production hours shown in Table 35. The production rates for each assembly line and product combination, in terms of hours per product, arc shown in Table 36. It takes 0.15 hour to manufacture 1 unit of product A on line 1, and so on. It costs $5 per hour of line time to produce any product. The inventory carrying cost per month for each product is 200 per unit (charged on each month’s ending inventory). Currently, there are 500 units of A and 750 units of B in inventory Management would like at least 1,000 units of each product in inventory at the end of April. Formulate an LP to determine the production schedule that minimizes the total cost incurred in meeting demands on time. Table 34:

OateABMarch 315,0002,000April 308,0004,000\begin{matrix} \text{Oate} & \text{A} & \text{B}\\ \text{March 31} & \text{5,000} & \text{2,000}\\ \text{April 30} & \text{8,000} & \text{4,000}\\ \end{matrix}

Table 35:

 Production Hours AvailableMonthLine 1Line 2March8002,000April4001,200\begin{matrix} \text{ } & \text{Production Hours Available}\\ \text{Month} & \text{Line 1} & \text{Line 2}\\ \text{March} & \text{800} & \text{2,000}\\ \text{April} & \text{400} & \text{1,200}\\ \end{matrix}

Table 36:

 Production RateProductLine 1Line 2A0.150.16B0.120.14\begin{matrix} \text{ } & \text{Production Rate}\\ \text{Product} & \text{Line 1} & \text{Line 2}\\ \text{A} & \text{0.15} & \text{0.16}\\ \text{B} & \text{0.12} & \text{0.14}\\ \end{matrix}

Question

James Beerd bakes cheesecakes and Black Forest cakes. During any month, he can bake at most 65 cakes. The costs per cake and the demands for cakes, which must be met on time, are listed in Table 33. Itcosts500 to hold a cheesecake, and 40¢ to hold a Black Forest cake, in inventory for a month. Formulate an LP to minimize the total cost of meeting the next three months’ demands. Table 33: $$ \begin{matrix}\text{ } & \text{Month 1} & \text{ } & \text{Month 2} & \text{ } & \text{Month 3} & \text{ }\\\text{Item} & \text{Demand} & \text{Cost/Cake }($) & \text{Demand} & \text{Cost/Cake }($) & \text{Demand} & \text{Cost/Cake }($) \\\text{Cheesecake} & \text{40} & \text{3.00} & \text{30} & \text{3.40} & \text{20} & \text{3.80}\\\text{Black Forest} & \text{20} & \text{2.50} & \text{30} & \text{2.80} & \text{10} & \text{3.40}\\\end{matrix} $$

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