What should be the production schedule for the four months

Assignment Help Operation Management

Reference no: EM131926256

Problem

A manufacturer of integrated circuits is planning production for the next four months. The forecast demand for the circuits is shown in the following table.

59_forecast demand.jpg

At the beginning of September, the warehouse is expected to be completely empty. There is room for no more than 1,800 integrated circuits to be stored. Holding costs for both types is $0.05 per unit per month. Because workers are given time off during the holidays, the manufacturer wants to have at least 800 IC341s and 850 IC256s already in the warehouse at the beginning of January.

Production costs are $1.25 per unit for IC341 and $1.35 per unit for IC256. Because demand for raw materials is rising, production costs are expected to rise by $0.05 per month through the end of the year. Labor to make model IC341 is 0.45 hours per unit; making model IC256 takes 0.52 hours of labor. Management has agreed to schedule at least 1,000 hours per month of labor. As many as 200 extra hours per month are available to management at the same cost, except during the month of December, when only 100 extra hours are possible. What should be the production schedule for IC341 and IC256 for the four months?

Reference no: EM131926256

Questions Cloud

What will be its cost of equity and What will be its WACC : Suppose Max's debt-equity ratio increases to 1.0. What will be its cost of equity? What will be its WACC?

What is the critical price for a margin call : You sold short 400 shares of ABC stock at $75 a share. The initial margin is 50 percent and the maintenance margin is 30 percent.

How much will the mass of the solid decrease : If the molar mass of the solid in the cell is 300 g mol-1 and its vapour pressure is 0.224 Pa at 450 K, by how much will the mass of the solid decrease.

What will the value of your portfolio be : What will be the value of your portfolio in January (net of the proceeds from the options) if the stock price ends up at $30? $40, $50?

What should be the production schedule for the four months : A manufacturer of integrated circuits is planning production for next four months. What should be production schedule for IC341 and IC256 for the four months?

represented in the net present value of investment : The difference between the _____ and the _____is represented in the net present value of an investment. Please have explanation.

Finding the payout and the profit : You purchase a put on IBM contract at $120 for a premium of $3. You hold the option until expiration when share price is $123.

Maxwell distribution of speeds to estimate : Use the Maxwell distribution of speeds to estimate (a) the fraction of CO2 molecules at 300 K that have speeds in the range of 200 to 250 m s-1

Formulate the given staffing problem by using lp : A power company has just announced August 1 opening of its second nuclear facility. Formulate this staffing problem by using LP and solve it by using Excel.

User Account

All Pages