Question: A product is produced by processing in two different processes. Produced in the first process semi-finished products become the final product in the second process.

A product is produced by processing in two different processes. Produced in the first process semi-finished products become the final product in the second process. For a quarter The final product demands and the capacities of the processes are given in the table below.

March April May Quantity demand 600 350 550 1.Process of capacity(hour) 900 600 600 2.Process of capacity(hour) 1100 900 800

0.5 hours in the first process for the production of a unit of semi-finished products, for the production of the final product 0.9 hours are required in the second period. Extra half produced in any period products and final products will be used in the next period. For semi-finished products 0.5 TL per month and 0.8 TL holding costs for final products. At the end of May, it is required to have at least 50 final product stocks. Production costs vary by month. Production of semi-finished products by months in the first process costs 20, 25 and 30 TL respectively and II. production costs of final goods in the process 25, 28 and 35 TL respectively. What kind of production to minimize total cost Write down the decision model found to be done

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!