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The plant is using the chase production option and the ATO process design. The BOM is illustrated below.
Requirement
The factory works on a process layout but the order lot sizing is open for determination. Verify the optimal method for lot sizing.
Questions:
What is BOM?
What is 2 to 1? 1 to 1?
Minimize: 60P + 120Q Subject to: 2P + 3Q >10 P + 4Q >12 P, Q> 0
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explanation
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