Dandy Diesel manufacturing company assembles diesel engines for heavy construction equipment. Over the next 4 quarters the
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Dandy Diesel manufacturing company assembles diesel engines for heavy construction equipment. Over the next 4 quarters the company expects to ship 40, 20, 60, and 15 units, respectively, but no more than 50 can be assembled in any quarter. There is a fixed cost of $2000 each time the line is setup for production, plus $200 per unit assembled. Engines may be held over in inventory at the plant for $100 per unit per month.
Dandy seeks a minimum total cost production plan for the 4 quarters, assuming that there in no beginning or ending inventory.
Do
(a) and
(b) as in Exercise 11-32. (Hint: Create nodes for each quarter and a common source node for production arcs.)
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