A pharmaceutical plant is planning the production schedule for the next 4 months, given the following...
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A pharmaceutical plant is planning the production schedule for the next 4 months, given the following demand forecast: Month Demand 1 2 300 450 600 3 4 850 Each month the plant can make 500 units using regular hours, at a cost of $30 a unit. During overtime the plant can produce 150 units at a cost of $40 a unit, and also the plant can outsource up to 100 more units at a cost of $45 a unit. Holding cost is $3 a month, and each unit has a shelf life of 2 months (so every production run can be used for this period and the next two months). (17) What are the recommended production quantities and production modes for each month? What is the total cost of this policy? (8) The production manager learned that the product shelf life can be extended to 5 months with a purchase of a new freezer. How much should the plant be willing to pay for the new freezer? A pharmaceutical plant is planning the production schedule for the next 4 months, given the following demand forecast: Month Demand 1 2 300 450 600 3 4 850 Each month the plant can make 500 units using regular hours, at a cost of $30 a unit. During overtime the plant can produce 150 units at a cost of $40 a unit, and also the plant can outsource up to 100 more units at a cost of $45 a unit. Holding cost is $3 a month, and each unit has a shelf life of 2 months (so every production run can be used for this period and the next two months). (17) What are the recommended production quantities and production modes for each month? What is the total cost of this policy? (8) The production manager learned that the product shelf life can be extended to 5 months with a purchase of a new freezer. How much should the plant be willing to pay for the new freezer?
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MONTH DEMAND 2 300 450 600 850 REGULAR PRODUCTION 500 500 500 5... View the full answer
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
Posted Date:
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