Question: A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 325 units, In period

A manager is applying the transportation model of
A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 325 units, In period 2 is 375 units and in period 3 is 425 units. The manager has 225 hours of regular employment available for $10/hour each period. In addition, 150 hours of overtime are available for $15/hour each period. The manager also has the option to subcontract the production at rate of $18/hour for the maximum of 50 hours. If holding cost is $1 per unit each period, what is the minimum production cost? Period Demand 325 2 375 3 425 Options Rate (5) Hours available 10 225 Regular time Overtime 15 150 Subcontract 18 50 A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 325 units, In period 2 is 375 units and in period 3 is 425 units. The manager has 225 hours of regular employment available for $10/hour each period. In addition, 150 hours of overtime are available for $15/hour each period. The manager also has the option to subcontract the production at rate of $18/hour for the maximum of 50 hours. If holding cost is $1 per unit each period, what is the minimum production cost? Period Demand 325 2 375 3 425 Options Rate (5) Hours available 10 225 Regular time Overtime 15 150 Subcontract 18 50

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