Company wishes to determine the optimal production schedule

Assignment Help Operation Management

Reference no: EM132225273

A company has signed the following contract to supply customers A and B for the next three months.

June July August

Customer A 30 20 15

Customer B 20 20 10

They can produce 40 units per month at a cost of $100 per unit on regular time and an additional 10 units per month on overtime at a cost of $120 per unit. They can store units at a cost of $ 10 per unit per month. The contract allows the company to fall short on its supply commitment to customer A during the month of June and July, but this incurs a penalty cost of $ 5 per unit, however, all shipments are to be completed by August. No shortages are allowed for customers B and his demand must be satisfied on the months specified.

The company wishes to determine the optimal production schedule that will minimize the total cost of production, storage and shortage.

Formulate and solve a transportation model for this problem.

Reference no: EM132225273

Questions Cloud

Factors on the motivation of government employees : Assess the impact of the following factors on the motivation of government employees

Make personnel plan of a beauty salon : Make a personnel plan of a beauty salon

Canadian federal government long-gun registry : Two examples of massively mismanaged projects are TAURUS and the Canadian federal government long-gun registry.

Tacit to explicit knowledge is exemplified by : Knowledge sharing is. Which of the following statements about body movements is true? Tacit to explicit knowledge is exemplified by:

Company wishes to determine the optimal production schedule : The company wishes to determine the optimal production schedule that will minimize the total cost of production, storage and shortage.

Memorable word structures from the song and lyrics : Provide 5 examples of memorable word structures from the song/lyrics.

Write one marketing strategy objective for your product : How would you write one marketing strategy objective for your product or service for your marketing plan in a few sentences

Classifies international business into three categories : The textbook classifies international business into three categories, give two of the three categories?

Friedman iron rules of the global economy : What are two of Mr. Friedman iron rules of the global economy, from the video the World is Flat 3.0?

User Account

All Pages