Sailco Corporation must determine how many sailboats should be produced during eachof the next four quarters (one quarter is three months). Demand is as follows: first quarter,40 sailboats; second quarter, 60 sailboats; third quarter, 75 sailboats; fourth quarter, 25 sailboats. Sailco must meet demand on time. At the beginning of the first quarter, Sailco hasan inventory of 10 sailboats. At the beginning of each quarter, Sailco must decide howmany sailboats should be produced during the current quarter. For simplicity, we assumethat sailboats manufactured during a quarter can be used to meet demand for the currentquarter. During each quarter, Sailco can produce up to 40 sailboats at a cost of $400 persailboat. By having employees work overtime during a quarter, Sailco can produce additional sailboats at a cost of $450 per sailboat. At the end of each quarter (after productionhas occurred and the current quarter’s demand has been satisfied), a carrying or holdingcost of $20 per sailboat is incurred. Formulate a balanced transportation problem to minimize the sum of production and inventory costs during the next four quarters
Sailco Corporation must determine how many sailboats should be produced during each
of the next four quarters (one quarter is three months). Demand is as follows: first quarter,
40 sailboats; second quarter, 60 sailboats; third quarter, 75 sailboats; fourth quarter, 25 sailboats. Sailco must meet demand on time. At the beginning of the first quarter, Sailco has
an inventory of 10 sailboats. At the beginning of each quarter, Sailco must decide how
many sailboats should be produced during the current quarter. For simplicity, we assume
that sailboats manufactured during a quarter can be used to meet demand for the current
quarter. During each quarter, Sailco can produce up to 40 sailboats at a cost of $400 per
sailboat. By having employees work overtime during a quarter, Sailco can produce additional sailboats at a cost of $450 per sailboat. At the end of each quarter (after production
has occurred and the current quarter’s demand has been satisfied), a carrying or holding
cost of $20 per sailboat is incurred. Formulate a balanced transportation problem to minimize the sum of production and inventory costs during the next four quarters
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