Compute production strategy by solving linear program

Assignment Help Operation Management

Reference no: EM131126606

A manufacturer of high-voltage switches projects demand (in units) for the upcoming year to be as follows.

JAN 1000 FEB 1000 MAR 1000 APRIL 2000 MAY 2400 JUNE 2500 JULY 3200 AUG 2000 SEP 1000 OCT 900 NOV 800 DEC 800

The plant runs 160 hours per month and produces at an average rate of 10 switches per hour. Unit profit per switch sold is $50, and the estimated cost to hold a switch in inventory for one -month is $5. There is no inventory at the start of the year.

Overtime can be used at a cost of $300 per hour. Compute a production strategy by solving a linear program to maximize profit (i.e., net sales revenue minus inventory carrying cost minus overtime cost). Is the amount of overtime in the plan reasonable? If no, what changes to the LP model could be made to generate a more reasonable solution?

Reference no: EM131126606

Questions Cloud

Considerable work-in-process and raw material inventories : Rome Corporation is a supplier of ball bearings. Because of the specialized manufacturing process employed, considerable work-in-process and raw material inventories are created. The current inventory levels are $1,500,000 and $2,000,000, respectivel..

Four different vehicles are currently being served : Assume a gas station has four gas pumps. Four different vehicles are currently being served at these four pumps. Assume that your vehicle is the fifth one to pull into a gas station. You are waiting for your turn to fill gasoline for your vehicle. In..

Compare the stages model-definition demonstrating critical : Compare the Stages Model by Birkland to the Policy Change Cycle by Bryson. How are the same or difference? Which is more dynamic? Effective? Why? (Use analysis and comparison, not definition demonstrating critical thinking).

Executive pay program to meet the criteria of competitive : Describe the three components you consider to be the most important in an executive pay program to meet the criteria of competitive, performance based, and fair to all stakeholders

Compute production strategy by solving linear program : A manufacturer of high-voltage switches projects demand (in units) for the upcoming year to be as follows. Overtime can be used at a cost of $300 per hour. Compute a production strategy by solving a linear program to maximize profit (i.e., net sales ..

The intervals determined from the frequency distribution : A small vendor has either a good day of sales with an average of $1,000 or a bad day with an average of only $500 for the day. To simulate these outcomes, random numbers from 00 to 99 should be assigned with the intervals determined from the frequenc..

Would it be ethical to have lunch and discuss the issues : You have been hired as a top manager in a firm that operates in an industry where 4 large firms dominate the market. You are contacted by the manager of at another of the large firms and asked to discuss cooperating in marketing decisions. Would it b..

What is the unit product cost using variable? costing : Flexlux, Inc. reports the following? information: Units produced 520 units Units sold 520 units Sales price ?$110 per unit Direct materials ?$40 per unit Direct labor ?$25 per unit Variable manufacturing overhead ?$30 per unit Fixed manufacturing ove..

What are strategic information systems : Identify disruption and strategies for dealing and responding to disruption. How do we create value through IS? What are Strategic Information Systems?

User Account

All Pages