Question
The demand for a special small engine over the next five quarters is 200, 150, 300, 250, and 400 units, respectively. The manufacturer supplying the
The demand for a special small engine over the next five quarters is 200, 150, 300, 250, and 400 units, respectively. The manufacturer supplying the engine has different production capacities estimated at 180, 230, 430, 300, and 300 for the five quarters. Backordering is not allowed, but the manufacturer may use overtime to fill the immediate demand, if necessary. The overtime capacity for each period is half the regular capacity. The production costs per unit for the five periods are $100, $96, $116, $102, and $106, respectively. The overtime production cost per engine is 50% higher than the regular production cost. If an engine is produced now for use in later periods, an additional storage cost of $4 per engine per period is incurred. Formulate the problem as a transportation model. Determine the optimum number of engines to be produced during regular time and overtime of each period.
Step by Step Solution
3.41 Rating (154 Votes )
There are 3 Steps involved in it
Step: 1
Transportation model 200 Demand QTR 1 150 Demand QTR 2 300 Demand QTR 3 250 Demand QTR 5 400 Deman...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started