Aluminaca produces 100-foot-long, 200-foot-long, and 300-foot-long ingots for customers. This weeks demand for ingots is listed in

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Aluminaca produces 100-foot-long, 200-foot-long, and 300-foot-long ingots for customers. This week’s demand for ingots is listed in the file P04_101.xlsx.

Aluminaca has four furnaces in which ingots can be produced. During 1 week, each furnace can be operated for 50 hours. Because ingots are produced by cutting up long strips of aluminum, longer ingots take less time to produce than shorter ingots. If a furnace is devoted completely to producing one type of ingot, the number it can produce in 1 week is listed in the file P04_101.xlsx. For example, furnace 1 could produce 350 300-foot ingots per week. The material in an ingot costs $10 per foot. A customer who wants a 100-foot or 200-foot ingot will accept an ingot of that length or longer. How can Aluminaca minimize the material costs incurred in meeting required weekly demands?

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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