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A manufacturer of electrical switchgears is in the process of preparing APP for the next year. Let us assume that a good measure of capacity
A manufacturer of electrical switchgears is in the process of preparing APP for the next year. Let us assume that a good measure of capacity is the number of working hours available per month. The table presents details pertaining to the forecast demand for the equivalent model of switchgears and the number of working days available during the planning horizon.
The following details are also available:
The manufacturer currently works on a singleshift basis and employs workers
One unit of switchgear requires hours of production time
It is expected that at the beginning of the planning horizon, there will be finished goods inventory of switch gears.
Inventory carrying costs are Rs per switchgear per month and unit shortage costs are percent of unit carrying costs
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