Production plan-minimizes cost using transportation method

Assignment Help Operation Management

Reference no: EM13964028

A firm wishes to develop an aggregate plan for the next 3 periods (January, February and March).

Demand is for 1200 units in January, 1400 in February and 1600 in March. The firm has 4 planning strategies at hand - inventories, regular time, overtime and subcontract. They have 50 units of beginning inventory and the capacity to produce 900 units with regular time per month, 300 units with overtime monthly and the ability to subcontract 1000 units monthly. Cost data is as follows:

Regular time cost = $75/unit

Overtime cost = $112.5/unit

Subcontract cost =$120/unit

Inventory Carrying cost = $6 per month/unit

Assuming that back orders are not permitted, set up a production plan that minimizes cost using the transportation method.

Reference no: EM13964028

Questions Cloud

Programs be categorized into different risk pools : Can programs like Medicare and Medicaid adopt programs defined as risk pools based on the work performed by the individual? How can the recipients of these programs be categorized into different risk pools?

Self-image play in buying process-decision making process : What do trends and self-image play in the buying process and decision making process. As a business leader, what are the implications of your experience? What if your business was selling ketchup, what does that mean for you? One last follow-up on et..

What are some of the hidden requirements contained : What are some of the "hidden requirements" contained within the Section I of a Government contract (the FAR/DFARS/etc. clauses)? Pick one and advise your classmates what a company must do to comply. Small businesses in particular tend to "copy and pa..

Formulate this problem as integer program using notation : A NGO is concerned about a possible need to provide humanitarian aid to a country at risk of hurricane damage and so is planning a program of emergency aid to that country. They are keen to do this at minimal cost. Formulate this problem as an intege..

Production plan-minimizes cost using transportation method : Demand is for 1200 units in January, 1400 in February and 1600 in March. The firm has 4 planning strategies at hand - inventories, regular time, overtime and subcontract. Assuming that back orders are not permitted, set up a production plan that mini..

Manufactures and distributes cheese-coated pretzels : The pretzel corporation manufactures and distributes cheese-coated pretzels. They purchase their cheese, which come from a specific supplier in 10 kg packages, in batches of 500 kg. This amounts to approximately an order every month, since annual dem..

Impact a customers overall impression of the business : A mystery shopper is someone who poses as a legitimate customer in order to provide an objective view of their shopping experience to a client. Mystery shoppers observe and evaluate such things as customer service, product knowledge, employee trainin..

What position about the precautionary principle : The European Community holds what position about the precautionary principle?

Transaction can be characterized : Roxy, while driving through Wyoming to her home in Montana, accidentally lost control of her car and drove it through a window into a store owned by Colt. Colt sued Roxy in a Wyoming court for damages to his store. Reg offered to sell his motorcycle ..

User Account

All Pages