Question & Answer: Keen in mind no shortages are allowed! And that no initial inventories exist!…..

An assembly plant makes two product types. Product 1 combines one part A and two parts B to make each finished unit. Product 2 requires one part A and one part B per finished unit. Each of the component types is manufactured at its own component facility and shipped to the assembly plant. Each plant operates 200 hours per period. Plant A produces 100 part As per hour: Plants B produces 150 part Bs per hour. It takes 0.02 hours to assemble a unit of product 1 and 0.01 hours to assemble each unit of type 2 product. Inventories can be kept at the production plants at a cost of $1 per unit per period for an A or a B, $4 per unit of product 1 and $3 per unit of product 2. Given the final product demands indicated in Table 1, find the optimal production plan for the next three periods. No shortages are allowed, and no initial inventories exist.