How should production be allocated among the five plants

Assignment Help Project Management

Reference no: EM131163544

Allocating Plant Output A firm owns five manufacturing plants that are responsible for the quarterly production of an industrial solvent. The production process exhibits diseconomies of scale. At plant p, the cost of making x thousand pounds of the solvent is approximated by the quadratic function f(x) ¼ (1/cp)x2 . The parameters cp are plant dependent, as shown in the table

P	1	2	3	4	5
c_P	3	6	4	8	5

The quarterly volume requirement is 50,000 pounds.

How should production be allocated among the five plants in order to minimize the total cost of meeting the volume requirement?

Reference no: EM131163544

Questions Cloud

What is the purpose of martial law : What is the purpose of martial law? Explain. What would have to be the magnitude of an event for the government to decide to initiate martial law? Why?

Why is hypothetical basket of goods use to measure inflation : Why is a hypothetical "basket" of goods used to measure inflation? Suppose that the U.S. textile industry is competitive and there is no international trade in textiles. In long run equilibrium, the price per unit of cloth is $30. Describe the equili..

Estimate the overall friction factor : A light liquid (≈950 kg/m3 ) flows at an average velocity of 10 m/s through a horizontal smooth tube of diameter 5 cm. The fluid pressure is measured at 1-m intervals along the pipe

Compute the mad of forecast errors : Develop an aggregate plan that will meet the demand and other conditions of the problem. Do not try to find the optimum; just find a good solution and state the procedure you might use to test for a better solution.

How should production be allocated among the five plants : How should production be allocated among the five plants in order to minimize the total cost of meeting the volume requirement?

Account the effects on third parties : An individual's decision to purchase and drive a car does not take into account the effects on third parties. True or fALSE? Support with reason.

Is anything still unclear that could be clarified : What were the most compelling topics learned in this course? How did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified?

Describe the purpose of each financial statement : Describe the purpose of each financial statement. Determine which one (1) is the most effective in communicating the financial health of an organization. Defend your position

About the definition of inflation : From the list below, select the correct definition of inflation.

User Account

All Pages