Question: t 1 Given the following information: Regular Prod. Capacity = 8 , 2 0 0 units / qtr Regular Prod. Cost = $ 1 8

t 1 Given the following information:
Regular Prod. Capacity =8,200 units/qtr Regular Prod. Cost = $18/unit
Overtime Prod. Capacity =3,000 units/qtr Overtime Prod. Cost = $23/unit
Subcont Prod. Capacity =5,500 units/qtr Subcont Prod. Cost = $28/unit
Inventory Capacity =7,000 units/qtr Inventory Cost = $7/unit/qtr
Beginning Inventory =2,300 units Backordering Cost = $19/unit/qtr
1. Formulate the Objective Function (note that there are 3 quarters).
2. and 3. Formulate all Constraints (standardized).
4. How many decision variables are in the model?
5. How many constraints are in the model?
Part 2 Given the following information:
Regular Prod. Capacity =10,500 units/qtr Regular Prod. Cost = $13/unit
Beginning work force =85 workers Subcont Prod. Cost = $20/unit
Production rate/worker =100 units/qtr Inventory Cost = $9/unit/qtr
Beginning Inventory =3,000 units Hiring Cost = $5,100/worker
Firing Cost = $8,400/worker
6. Formulate the Objective Function (note which strategies to use).
7. and 8. Formulate all Constraints (standardized).
9. How many constraints are in the model?
10. If there were 6 months of forecasts, instead of 3 quarters, how many decision
variables would be in the model?
Quarter Demand
17,500
214,300
310,800
Linear programming is to be used to determine a production plan strategy of Level Production,
Overtime, and Subcontracting.
Quarter Demand
111,200
217,800
35,900
Linear programming is to be used to determine a production plan strategy of Level Production,
Chase Demand, and Subcontracting. Regular Production is the only capacity limit.

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