(Solved): Problem 8-12 (Algo) Alan Industries is expanding its product line to include three new products: A, ...

Problem 8-12 (Algo) Alan Industries is expanding its product line to include three new products: A, B, and C. These are to be produced on the same production equipment, and the objective is to meet the demands for the three products using overtime where necessary. The demand forecast for the next four months, in hours required to make each product is: Because the products deteriorate rapidly, there is a high loss in quality and, consequently, a high carrying cost when a product is made and carried in inventory to meet future demand. Each hour's production carried into future months costs

per production hour for

for

, and

for

. Production can take place elther during regular working hours or during overtime. Regular time is paid at

when working on

for B , and

for C . The overtime premium is 50 percent of the regular time cost per hour. The number of production hours available for regular time and overtime is Calculate the objective value using Excel Solver. Note: Do not round intermediate calculations. Objective value