Question: APP Linear Programming -- Level Production, Chase Demand, Subcontracting Quarter Demand Regular Prod. Capacity = 6,000 units/qtr Regular Prod. Cost = $6/unit 1 4,000 Subcontracting

APP Linear Programming -- Level Production, Chase

APP Linear Programming -- Level Production, Chase Demand, Subcontracting Quarter Demand Regular Prod. Capacity = 6,000 units/qtr Regular Prod. Cost = $6/unit 1 4,000 Subcontracting Capacity = 5,000 units/qtr Subcontracting Cost = $8/unit 2 7,000 Inventory Capacity = 14,000 units/qtr Inventory Cost = $2/unit/qtr 3 9,000 Beginning Inventory = 2,100 units Backorder Cost = $5/unit/qtr 4 13,000 Production rate/worker = 500 units/qtr Hiring cost = $1,600 / worker Beginning workforce = 12 workers Firing cost = $4,500 / worker The company would like to use Linear Programming to determine the optimal mixture of Level Production, Chase Demand, and Subcontracting strategies. Which of the following is an appropriate representation of the workforce constraint for the 1st quarter? W1-W2-H2+ F1 = 12 W-H1+ F1 - 12 W1-W2-H1 + F1 = 0 W2W + H2 - F1 - 12 W+H+F1 - 12 APP Linear Programming -- Level Production, Chase Demand, Subcontracting How many decision variables are in the model? See the previous question. 30 20 12 16 28 24

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