A motor bike manufacturing plant has developed the accompanying supply, demand, cost, and inventory data. The...
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A motor bike manufacturing plant has developed the accompanying supply, demand, cost, and inventory data. The firm has a constant workforce and meets all its demand. Allocate production capacity to satisfy demand at a minimum cost. What is the cost of this plan? Supply Capacity available (Units) Period Regular Time 300 400 450 Overtime 50 Subcontract 200 200 200 1 50 3 50 Demand Forecast (Units) Period Demand 1 450 2 550 3 750 Other data | Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per period 50 units $ 50 $ 65 $ 80 $ 1 $ 4 Back order cost per unit per period Solution: Demand for Total capacity Unused available Supply from Period 2 Period 3 capacity (supply) (dummy) Period 1 | 1 Beginning inventory 50 50 51 52 Regular time 65 66 67 Overtime 80 81 82 Subcontract 54 50 51 Regular time 69 65 66 Overtime 84 80 81 Subcontract 58 54 50 Regular time 73 69 65 Overtime 88 84 80 Subcontract Total Demand 450 550 750 Period 3 Period 2 Period 1 A motor bike manufacturing plant has developed the accompanying supply, demand, cost, and inventory data. The firm has a constant workforce and meets all its demand. Allocate production capacity to satisfy demand at a minimum cost. What is the cost of this plan? Supply Capacity available (Units) Period Regular Time 300 400 450 Overtime 50 Subcontract 200 200 200 1 50 3 50 Demand Forecast (Units) Period Demand 1 450 2 550 3 750 Other data | Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per period 50 units $ 50 $ 65 $ 80 $ 1 $ 4 Back order cost per unit per period Solution: Demand for Total capacity Unused available Supply from Period 2 Period 3 capacity (supply) (dummy) Period 1 | 1 Beginning inventory 50 50 51 52 Regular time 65 66 67 Overtime 80 81 82 Subcontract 54 50 51 Regular time 69 65 66 Overtime 84 80 81 Subcontract 58 54 50 Regular time 73 69 65 Overtime 88 84 80 Subcontract Total Demand 450 550 750 Period 3 Period 2 Period 1
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Related Book For
Operations Management Processes and Supply Chains
ISBN: 978-0132807395
10th edition
Authors: Lee J. Krajewski, Larry P. Ritzman, Manoj K. Malhotra
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