Determine the optimal production schedule

Assignment Help Operation Management

Reference no: EM132289616

Point Place company manufactures a product in two-stages: Stage 1 and Stage 2. For each product, it takes 0.6 hours to complete Stage 1, and 0.8 hours to complete Stage 2 of production. A product that has completed Stage 1 but not yet started Stage 2 is called an intermediate product, and one that has completed both stages is called a finished product. The demand for the finished product, and production capacities and costs for Stages 1 and 2 for the summer months is given in the table below: June July August Demand for finished product 500 450 600 Stage 1 capacity (hr) 800 700 550 Stage 2 capacity (hr) 1000 850 700 Stage 1 cost ($/unit) 10 12 11 Stage 2 cost ($/unit) 15 18 16 Intermediate products may be stored until further months to be used in Stage 2 production, and finished products may be stored until further months to satisfy the demand. The cost per month of inventory holding for intermediate products is $0.20, and for finished products is $0.40. Formulate an LP to determine the optimal production schedule for the summer months. Find the optimal solution using Excel solver. (Hint: You need two separate flow balances for two items – intermediate products and finished products)

Reference no: EM132289616

Questions Cloud

What you would expect in negotiations with the chinese : Describe what you would expect in negotiations with the Chinese and how you would handle various situations.

Current status of corporate social responsibility : Current status of corporate social responsibility as an expectation for businesses.

Criticism of or charge against multinational corporation : Which is not a criticism of or charge against multinational corporation.

Describe the level of power and interest each stakeholder : Describe the level of power and interest each stakeholder has in a project. Prepare a stakeholder power/interest grid for a project.

Determine the optimal production schedule : Formulate an LP to determine the optimal production schedule for the summer months. Find the optimal solution using Excel solver.

Developers cut down on the number of software bugs : Do research on the Web to find out more about this tool and how it might help developers cut down on the number of software bugs.

Male accused of murdering white female in apartment burglary : Defendant Bob Smith is an African-American male accused of murdering a white female in an apartment burglary.

Insult and cultural exchange or cultural appropriation : Is crossing culture a compliment or insult and cultural exchange or cultural appropriation ?

Affirmative action compliance is reviewed : An important step in avoiding discriminatory practices during selection is to. Affirmative action compliance is reviewed by the.

User Account

All Pages