Suppose that 10 additional units are needed in period 4. By using Wagner Within method, where should
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Question:
Suppose that 10 additional units are needed in period 4. By using Wagner Within method, where should they be produced?
An item is manufactured to meet known demand for four periods according to the following data : Unit production cost (Euro per period) Production range (units) Period 1 Period 2 Period 3 Period 4 Machine 1 : 1-3 1 2 2 3 Machine 2 : 4-11 1 4 5 4 Machine 3 : 12-15 2 4 7 5 Machine 4 : 16-25 5 6 10 7 Unit holding cost to next period (Euro) 0.3 0.35 0.2 0.25 Total demand (units) 11 4 17 29 Conditions: 1. Each machine has production minimum and maximum capacity according to its production range. 2. Demand in each period must be satisfied within one period. 3. In each period, a machine cannot be used more than once.
- A. Period 1
- B. Period 4
- C. Period 2
- D. Period 3
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