Question: Question 1 ( 2 5 points ) The operations manager of an electronics firm wants to develop a production plan for the next six months.
Question points
The operations manager of an electronics firm wants to develop a production plan for the next six months. Projected orders for the company's products are listed below along with the direct cost of production in each month. The plan must specify the monthly amount in integers obviously to produce so that all demand is met. Shortages are not permitted. Any amount produced in excess of demand can be stored in inventory for later use at a cost of $ unitmonth Initial and final inventories are
tableMonthDemand UnitsProduction cost $unit
In addition to the direct costs of production and inventory, overhead costs must be charged for the maximum production level obtained and the maximum inventory level obtained during the month period. The following information should be used.
i Overhead cost for production $maximum production level
ii Overhead cost for inventory $maximum level of inventory
These costs are charged only once during the month period.
a points Set up an integer programming model that determines the minimum cost plan. Define your decision variables clearly.
b points Solve the model you developed in part a using OpenSolver and report the optimal solution. Upload the excel file as well when uploading your solutions. Hint: Optimal objective function value is $
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
