Question: Need Solution 3. The ABC Company has two manufacturing plants on opposite sides of India. Each of these plants produces the same two products and
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3. The ABC Company has two manufacturing plants on opposite sides of India. Each of these plants produces the same two products and dten sells them to wholesalers within it: half of the country. The orders from wholesalers have already been received for the next 2 months {February and Ma rch}, where dte number of units requested are shown below {The company is not obligated to completely fill these orders but will do so if it can without decreasing its prots]. Each plant has 2D production days available ln February and 23 production days available in March to produce and ship these products. Inventories are depleted at dte end of January, but each plant has enough inventory capacity to hold both the two prod ucts ifan excess amount is produced in February for sale in March. In eidter plant, dte cost of holding inventory in this way is $3 per unit of product 1 and $4 per unit of Product 2. Each plant has the same two production processes, eadt of which can be used to produoe either of the two products. The production cost per unit produced of each product is shown below for each process in each plant. The production rate for each product {number of units produced per day devoted to that product] also is given for each process in each plant. The net sales revenue {selling price minus normal shipping costs} the company receives when a plant sells the products to its own customers :to wholesalers in its half of the oountryr] is $83 per unit of Product 1 and 5112 per unit of Product 2. However, it is also possible [and occasionally desirable] for a ptant to make a shipment to the other half of the oountryto help EI the sales of the other plant. When this happens, an Extra shipping cost of 59 per unit of product 1 and 5? per unit of Product 2 is incurred. The manager Mr. Anees P M, who happens to be an Iilu'llt graduate and also the Chief Technology Ofcer, needs to determine how much of each product should be produced by each production process in each plant during each month, as well as how Much each plant should sell each product in each month and how much each plant should ship of each product in each month to the other plant's customers. The objective is to determine the optimal plan that would maximize the total: profit {total net sales revenue minus the sum of the production costs, inventory costs, and extra shipping costs}. Formulate this aggregate production planning problem as a transportation problem [Transportation table is NEEESARY and ELI FFIEiENT]
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