7 Old Pueblo Engineering Contractors creates six-month rolling schedules, which are recom- puted monthly. For competitive reasons

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7 Old Pueblo Engineering Contractors creates six-month "rolling" schedules, which are recom- puted monthly. For competitive reasons (they would need to divulge proprietary design criteria, methods, and so on), Old Pueblo does not subcontract. Therefore, its only options to meet cus- tomer requirements are (1) work on regular time; (2) work on overtime, which is limited to 30 percent of regular time; (3) do customers' work early, which would cost an additional $5 per hour per month; and (4) perform customers' work late, which would cost an additional $10 per hour per month penalty, as provided by their contract.

Old Pueblo has 25 engineers on its staff at an hourly rate of $30. The overtime rate is $45. Customers' hourly requirements for the six months from January to June are

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Develop an aggregate plan using the transportation method of linear programming. Assume 20 working days in each month.

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Operations Management For Competitive Advantage

ISBN: 1572

11th Edition

Authors: Richard B. Chase, F. Robert Jacobs

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