Minimize the total cost incurred during next four quarters

Assignment Help Operation Management
Reference no: EM131176217

During the next four quarters, Dorian Auto must meet (on time) the following demands for cars: 4000 in quarter 1; 2000 in quarter 2; 5000 in quarter 3; 1000 in quarter 4. At the beginning of quarter 1, there are 300 autos in stock. The company has the capacity to produce at most 3000 cars per quarter. At the beginning of each quarter, the company can change production capacity. It costs $100 to increase quarterly production capacity by one unit. For example, it would cost $10,000 to increase capacity from 3000 to 3100. It also costs $50 per quarter to maintain each unit of production capacity (even if it is unused during the current quarter). The variable cost of producing a car is $2000. A holding cost of $150 per car is assessed against each quarter's ending inventory. At the end of quarter 4, plant capacity must be at least 4000 cars.

Determine how to minimize the total cost incurred during the next four quarters.

Use Solver Table to determine how much the total cost increases as the required capacity at the end of quarter 4 increases (from its current value of 4000). 

Reference no: EM131176217

Questions Cloud

Describing wal-marts strategy and strategic management plan : describing Wal-Mart's strategy and strategic management plan using David’s Comprehensive Strategic-Management Model.
Workplace in construction consulting : Prepare a proposal for your workplace in Construction Consulting that details the implementation of a management philosophy or program of your choice designed to improve your workplace in Construction Consulting. Be specific in what you propose and b..
Developing and retaining employees in these diverse places : You are the VP of HRM for a multinational organization with locations in Seoul, Buenos Aires, and New York. One of the challenges you are facing is in attracting and retaining talented employees in all three of these locations. discuss the issues, pr..
Practices to help them realign their strategic initiatives : The Senior Vice President of Human Resources has just informed you that she would like for you to research various HRM practices of Fortune 500 companies. This research will be presented to the board of trustees next month. They want to review other ..
Minimize the total cost incurred during next four quarters : During the next four quarters, Dorian Auto must meet (on time) the following demands for cars: 4000 in quarter 1; 2000 in quarter 2; 5000 in quarter 3; 1000 in quarter 4. At the beginning of quarter 1, there are 300 autos in stock. Determine how to m..
How frequently should status reports be submitted : How frequently should Status Reports be submitted? What can you do to help enhance the skill sets of the team members already in place? What can you do to help get them fully involved, fully committed? In order to improve process, and give accurate e..
Describe five alternative system building approaches : Describe five alternative system building approaches that JetBlue could apply to implement a transaction processing system for baggage. Identify which one of the five alternative system building approaches you believe JetBlue, would apply, and explai..
Assume that the daily probability of major earthquake : Assume that the daily probability of a major earthquake in LA is 0.07%. The chance that your computer center will be damaged during such a quake is 5%. If the center is damaged, the estimated damage to the computer will be $4 million. Calculate the e..
What are advantages of single factor productivity measures : What are advantages of Single Factor Productivity measures (such as labor productivity) over Multi Factor Productivity measures? Check all that apply.

Reviews

Write a Review

Operation Management Questions & Answers

  Capital budgeting problem with six projects-binary variables

The following questions refer to a capital budgeting problem with six projects represented by binary variables a, b, c, d, e, and f.

  Transformational change management plan

You will create an entire Transformational Change Management Plan for a medium-sized public company that has lost business to a competitor that has chosen to outsource much of its production operations.

  Create an activity network project schedule

•Create an Activity Network Project Schedule for your Personal Project •The format of a standard Activity Network Project Schedule varies from one organization to another. You can see a good example of an Activity Network Project Schedule in the Pint..

  A company is considering making and selling a new type of

a company is considering creating and selling a new type of cookies. create a report explaining the research process

  Certain level of innovation is involved

Entrepreneurship generally means that a certain level of innovation is involved. This doesn't mean simply creating new products or services, but it can also be developing new ways of doing existing activities. Innovation is the process of creating, c..

  The effectiveness of richard branson''s ability to articulate

Determine two key ways in which Richard Branson is likely to motivate employees in order to achieve his goals for the Virginia Group. Indicate whether or not his approach is likely to work in a different organizational setting. Provide support for..

  Fraud examination-fraudulent behavior

John Doe, a fraud examiner, has been hired by ABC Corporation to investigate a shortage of cash, which management thinks is being caused by fraudulent behavior. John Doe could spend his time and money pursuing witnesses to the crime or collecting doc..

  Creates variety of challenges and risks

Global transportation creates a variety of challenges and risks, but also opportunities: Transporting their products globally increases the size of companies’ markets. Explain why global transportation is such an important issue for buyers, sellers, ..

  Describe the internets effects on planning by how it

sources must be cited in apa format. your response should be a minimum of one 1 single-spaced page to a maximum of two

  Discuss the business entity that represents the best choice

discuss the business entity that represents the best choice for each business, taking control, taxation, and liability issues into consideration. Identify laws

  Subcomponents enter into mps items a and b

You are a materials planner and are responsible for, among other things, components X and Y. Components X and Y enter into subcomponents J and Q, and these subcomponents enter into MPS items A and B.

  Explain the concept of the expected-value decision rule

Explain the concept of the expected-value decision rule. In your discussion, review how the expected-value decision rule played a part in a recent decision you made.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd