Formulate the problem as a transportation model

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Question: The demand for a special small engine over the next five quarters is 200, 150, 300, 250 and 400 units, respectively. The manufacturer supplying the engine has different production capacities estimated t 180, 230, 430, 300 and 300 for the five quarters. Back-ordering is not allowed, but the manufacturer may use overtime to fill the immediate demand, if necessary. The overtime capacity for each period is half the regular capacity. The production costs per unit for the five periods are exist100, exist96, exist116, exist102 and exist106, respectively. The overtime production cost per engine is 50% higher than the regular production cost. If an engine is produced now for use in later periods, an additional storage cost of exist4 is incurred. Formulate the problem as a transportation model.

Reference no: EM131864277

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