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Hanson Wheels Co. has just received orders for 1,100 standard wheels and 1.500 deluxe wheels next month and for 800 standard and 1,500 deluxe the following month. All orders must be filled.
The cost of making standard wheels is $10 and deluxe wheels is $15. Overtime rates are 50% higher. There are 1,000 hours of regular time and 500 hours of overtime available each month. It takes .5 hour to make a standard wheel and .6 hour to make a deluxe wheel. The cost of storing a wheel from one month to the next is $2.
Set up a Linear Programming Model in order to determine the regular-time and overtime production quantities in each month for standard and deluxe wheels.
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