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Component D consists of 4 units of A, 1 unit of B, and 2 units of C. The table and figure indicate which facilities can produce which product (component or assembly). There is demand for 500 units of assembly D. The transportation costs between facilities 1 - 4 and facility 5 are identical. Total capacity to produce Band/or C at facility 3 is 800. To minimize costs , how much of C will be produced at facility 4? Only variable production costs need to be considered. Facility Variable production costs (€/unit} 1 10 (A) 2 12 (A); 14 ( B) 3 10 (B); 10 (C) 4 12 (C)

Component D consists of 4 units of A, 1 unit of B, and 2 units of C. The table and figure indicate which facilities can produce which product (component or assembly). There is demand for 500 units of assembly D. The transportation costs between facilities 1 - 4 and facility 5 are identical. Total capacity to produce Band/or C at facility 3 is 800. To minimize costs , how much of C will be produced at facility 4? Only variable production costs need to be considered. Facility Variable production costs (€/unit} 1 10 (A) 2 12 (A); 14 ( B) 3 10 (B); 10 (C) 4 12 (C)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  • Component D consists of 4 units of A, 1 unit of B, and 2 units of C.
  • The table and figure indicate which facilities can produce which product (component or assembly).
  • There is demand for 500 units of assembly D. The transportation costs between facilities 1 - 4 and facility 5 are identical.
  • Total capacity to produce Band/or C at facility 3 is 800.
  1. To minimize costs , how much of C will be produced at facility 4? Only variable production costs need to be considered.

Facility

Variable production costs (€/unit}

1

10 (A)

2

12 (A); 14 ( B)

3

10 (B); 10 (C)

4

12 (C)
2 2 3 3 4 C 4 2 5 D
Transcribed Image Text:2 2 3 3 4 C 4 2 5 D
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