Company Z has the following historical information about sales for one of its hydraulic pump models for the last 4 years: (PICTURE OF THE PERIOD AND YEARS) On the other hand, the manufacturing process used by Company Z is sequential* and has the following characteristics: (THE OTHER IMAGE) * Sequential; in the sense that the output of Mi is the input of Mi+1. ** In any order; in the sense that they can be interchanged, e.g. MA -> MB or MB -> MA. The company's operating costs are as follows: Cost per final unit produced "defect free": $100 Cost per final unit produced "with defects": $150 Cost per excess inventory (units "free of defects"): $50 Cost per inventory shortage ("defect free" units): $200 Revenue per final "defect free" unit produced and sold: $250 We have the following operating conditions: - Any sequence of 3 machines can be used. - Only one machine can be used once, within the same sequence of machines. - You can work UP TO 720 hours per month. - A "level production" type production strategy is followed. ------------------------------------------------------------------------------------- In both cases PROVE that both sequences meet the requirements of being the 1st and 2nd best sequences.
Company Z has the following historical information about sales for one of its hydraulic pump models for the last 4 years:
(PICTURE OF THE PERIOD AND YEARS)
On the other hand, the manufacturing process used by Company Z is sequential* and has the following characteristics:
(THE OTHER IMAGE)
* Sequential; in the sense that the output of Mi is the input of Mi+1.
** In any order; in the sense that they can be interchanged, e.g. MA -> MB or MB -> MA.
The company's operating costs are as follows:
Cost per final unit produced "defect free": $100
Cost per final unit produced "with defects": $150
Cost per excess inventory (units "free of defects"): $50
Cost per inventory shortage ("defect free" units): $200
Revenue per final "defect free" unit produced and sold: $250
We have the following operating conditions:
- Any sequence of 3 machines can be used.
- Only one machine can be used once, within the same sequence of machines.
- You can work UP TO 720 hours per month.
- A "level production" type production strategy is followed.
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In both cases PROVE that both sequences meet the requirements of being the 1st and 2nd best sequences.
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