A motorcycle manufacturer is determining its production schedule for the next 6 months. The cost of manufacturing

Question:

A motorcycle manufacturer is determining its production schedule for the next 6 months. The cost of manufacturing a motorcycle during each month is provided on the worksheet. At the end of each month, a holding cost of $200 per motorcycle left in inventory is incurred. No more than 50 motorcycles can be stored in inventory at any point in time. Monthly demands for motorcycles are also given on the worksheet. Assume that at the beginning of the first month, 25 completed motorcycles are in inventory. Also, this company can produce up to 200 motorcycles per month. Finally, each unit on hand at the end of month 6 (after demand is met) could be sold for $1000. Determine a cost-minimizing production schedule that meets all demands on time on worksheet.


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Practical Management Science

ISBN: 978-1305250901

5th edition

Authors: Wayne L. Winston, Christian Albright

Question Posted: