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Author Question: Byron's Manufacturing makes tables. Demand for the next four months and capacities of the plant are ... (Read 206 times)

mynx

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on: Dec 3, 2019
Byron's Manufacturing makes tables. Demand for the next four months and capacities of the plant are shown in the table below. Unit cost on regular time is $40. Overtime cost is 150% of regular time cost. Subcontracting is available in substantial quantity at $75 per unit. Holding costs are $5 per table per month; back orders cost the firm $10 per unit per month. Byron's management believes that the transportation algorithm can be used to optimize this scheduling problem. The firm has 50 units of beginning inventory and anticipates no ending inventory.

​MarchAprilMayJune
Demand400600600700
Regular capacity400400400400
Overtime capacity100100100100
Subcontract cap.150505050

a. How many units will be produced on regular time in June?
b. How many units will be produced by subcontracting over the four-month period?
c. What will be the inventory at the end of April?
d. What will be total production from all sources in April?
e. What will be the total cost of the optimum solution?
f. Does the firm utilize the expensive options of subcontracting and back ordering? When; why?
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Marked as best answer by mynx on Dec 3, 2019

momtoalll

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Reply #1 on: Dec 3, 2019
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john doe

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Reply #2 on: Jun 23, 2020
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