An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 18

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 floor speakers over the next two months, with the following delivery schedule:
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 arc $10 for each bookshelf model and $12 for floor 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 or regular time and on overtime to minimize total production and storage costs.