1)A firm manufactures bicycle wheels. Given the following costs and quarterly sales forecasts, use the transportation method to design a production plan that will economically meet demand. What is the cost of the plan?
Quarter 1: Sales Forecast 50,000
Quarter 2: Sales Forecast 150,000
Quarter 3: Sales Forecast 200,000
Quarter 4, Sales Forecast 52,000
Inventory carrying cost: $3 per pair of wheels per quarter
Production per employee: 1,000 pairs of wheels per quarter
Regular workforce: 50 workers
Overtime capacity: 50,000 pairs of wheels
Subcontracting capacity: 40,000 pairs of wheels
Cost of regular production: $50 per pair of wheels
Cost of overtime production: $75 per pair of wheels
Cost of subcontracting: $85 per pair of wheels
2) A firm makes five different integrated chip products and has five production lines each of which is dedicated to a particular integrated chip product. The production lines differ by sophistication of machines, sites, and the experience of the production personnel. The following estimate of processing times (in hours) is given; assign the integrated chip products so that the order can be completed as soon as possible.
|
Integrated Chips |
Production Lines |
||||
|
1 |
2 |
3 |
4 |
5 |
|
|
A1 |
30 |
18 |
26 |
17 |
15 |
|
B1 |
23 |
22 |
32 |
25 |
30 |
|
C1 |
17 |
31 |
24 |
22 |
29 |
|
D1 |
28 |
19 |
13 |
18 |
23 |
|
E1 |
23 |
14 |
16 |
20 |
27 |
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