The Nyanam manufacturing company has orders for three similar products Product Orders (Units) A 2000 B 500
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Question:
- The Nyanam manufacturing company has orders for three similar products
Product | Orders (Units) |
A | 2000 |
B | 500 |
C | 1200 |
Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However due varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week, and the unit costs are as follows
Machine | Capacity (units)1500 | ||
1 | 1500 | ||
2 | 100 | ||
3 | |||
Machine | Product | ||
A | B | C | |
1 | Sh.100 | Sh.120 | Sh.90 |
2 | Sh.130 | Sh.140 | Sh.120 |
3 | Sh.110 | Sh.100 | Sh.120 |
Required
- Use the transportation model to develop the minimum cost production schedule for the products and machines [10marks]
- Show the linear programming formulation [2marks]
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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