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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?
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Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0
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