The production planning period for flat-screen moni-tors at Louisiana’s Roa Electronics, Inc., is 4 months. Cost data are as follows:Regular-time cost per monitor $ 70Overtime cost per monitor $110Subcontract cost per monitor $120Carrying cost per monitor per month $ 4 For each of the next 4 months, capacity and demand for flat-screen monitors are as follows: PERIOD MONTH 1 MONTH 2 MONTH 3 a MONTH 4Demand 2,000 2,500 1,500 2,100CapacityRegular time 1,500 1,600 750 1,600Overtime 400 400 200 400Subcontract 600 600 600 600aFactory closes for 2 weeks of vacation.CEO Mohan Roa expects to enter the planning period with 500monitors in stock. Back ordering is not permitted (meaning, forexample, that monitors produced in the second month cannot beused to cover first month’s demand). Develop a production planthat minimizes costs using the transportation method.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
The production planning period for flat-screen moni-
tors at Louisiana’s Roa Electronics, Inc., is 4 months. Cost data
are as follows:
Regular-time cost per monitor $ 70
Overtime cost per monitor $110
Subcontract cost per monitor $120
Carrying cost per monitor per month $ 4
For each of the next 4 months, capacity and demand for flat-
screen monitors are as follows:
PERIOD
MONTH 1 MONTH 2 MONTH 3 a MONTH 4
Demand 2,000 2,500 1,500 2,100
Capacity
Regular time 1,500 1,600 750 1,600
Overtime 400 400 200 400
Subcontract 600 600 600 600
aFactory closes for 2 weeks of vacation.
CEO Mohan Roa expects to enter the planning period with 500
monitors in stock. Back ordering is not permitted (meaning, for
example, that monitors produced in the second month cannot be
used to cover first month’s demand). Develop a production plan
that minimizes costs using the transportation method.
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