7 Old Pueblo Engineering Contractors creates six-month rolling schedules, which are recom- puted monthly. For competitive reasons
Question:
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
Develop an aggregate plan using the transportation method of linear programming. Assume 20 working days in each month.
Step by Step Answer:
Operations Management For Competitive Advantage
ISBN: 1572
11th Edition
Authors: Richard B. Chase, F. Robert Jacobs