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Question 2 [45] A company must meet the following demands for a product: January 30 units; February 30 units; March 20 units. Demand may be
Question 2 [45] A company must meet the following demands for a product: January 30 units; February 30 units; March 20 units. Demand may be backlogged (backordering) at a cost of $5 per unit per month. All demand must be met by the end of March. A holding cost of $20 per unit is assessed on the inventory at the end of each month. Monthly production capacity and unit production cost during each month are given in the following table. Month Production Unit Production Capacity Cost January 35 $400 February March $410 $420 30 35 (a) Build a balanced transportation tabular to help the company decide on the production plan [10] (b) Continuing from (a), what is the numbers of decision variables and constraints? [5] (c) To generate a Basic Feasible Solution, what are the numbers of basic variables and non-basic variables? [5]
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