BDM & Son’s production manager is planning a series of monthly production schedules for its flagship noise cancelling headphones. The forecasted demand for the next three months is as follows: Month Demand for headphones 1 220 2 340 3 260 BDM & Son can normally produce 200 sets of headphones in a month. This is done during regular production hours at a cost of $500 per set of headphones. If demand in any month cannot be satisfied by regular production, the production manager has two other choices: Each month a limited number of headphones can be purchased from a friendly competitor for resale (the maximum number of total outside purchases over the three-month period combined is 250 sets of headphones, at a cost of $350 each per set); Alternatively, demand can be filled from on-hand inventory. The inventory carrying cost is $20 per set of headphones per month. Production from a given month can be used to satisfy demand in the following months. Back orders are not permitted (i.e., production in Month 2 cannot be used to meet demand from Month 1). Inventory on hand at the beginning of Month 1 is 25 sets of headphones. (i.e. beginning inventory in month 1 is 25 sets of headphones). Set up and formulate algebraically the above “production scheduling” problem as a TRANSPORTATION Model to minimize total cost over the planning period. Define the decision variables, objective function, and constraints

Calculus: Early Transcendentals

8th Edition

ISBN:9781285741550

Author:James Stewart

Publisher:James Stewart

Chapter1: Functions And Models

Section: Chapter Questions

Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...

See similar textbooks

Related questions

Topic Video

Question

BDM & Son’s production manager is planning a series of monthly production schedules for its flagship noise cancelling headphones. The forecasted demand for the next three months is as follows:

Month	Demand for headphones
1	220
2	340
3	260

BDM & Son can normally produce 200 sets of headphones in a month. This is done during regular production hours at a cost of $500 per set of headphones. If demand in any month cannot be satisfied by regular production, the production manager has two other choices:

Each month a limited number of headphones can be purchased from a friendly competitor for resale (the maximum number of total outside purchases over the three-month period combined is 250 sets of headphones, at a cost of $350 each per set);
Alternatively, demand can be filled from on-hand inventory. The inventory carrying cost is $20 per set of headphones per month.

Production from a given month can be used to satisfy demand in the following months. Back orders are not permitted (i.e., production in Month 2 cannot be used to meet demand from Month 1). Inventory on hand at the beginning of Month 1 is 25 sets of headphones. (i.e. beginning inventory in month 1 is 25 sets of headphones).

Set up and formulate algebraically the above “production scheduling” problem as a TRANSPORTATION Model to minimize total cost over the planning period. Define the decision variables, objective function, and constraints

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Optimization$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.

Similar questions