The Versatech Corporation has decided to produce three new products. Five branch plants now have excess product capacity. The unit manufacturing cost of the first product would be $41, $39, $42, $38, and $39 in Plants 1, 2, 3, 4, and 5, respectively. The unit manufacturing cost of the second product would be $55, $51, $56, $52, and $53 in Plants 1, 2, 3, 4, and 5, respectively. The unit manufacturing cost of the third product would be $48, $45, and $50 in Plants 1, 2, and 3, respectively, whereas Plants 4 and 5 do not have the capability for producing this product. Sales forecasts indicate that 700, 1,000, and 900 units of products 1, 2, and 3, respectively, should be produced per day. Plants 1, 2, 3, 4, and 5 have the capacity to produce 400, 600, 400, 600, and 1,000 units daily, respectively, regardless of the product or combination of products involved. Assume that any plant having the capability and capacity to produce them can produce any combination of the products in any quantity. Management wishes to know how to allocate the new products to the plants to minimize total manufacturing cost. (a) Formulate this problem as a transportation problem by constructing the appropriate parameter table. (b) Use Excel Solver to obtain an optimal solution.
The Versatech Corporation has decided to produce three new products. Five branch plants now have excess product capacity. The unit manufacturing cost of the first product would be $41, $39, $42, $38, and $39 in Plants 1, 2, 3, 4, and 5, respectively. The unit manufacturing cost of the second product would be $55, $51, $56, $52, and $53 in Plants 1, 2, 3, 4, and 5, respectively. The unit manufacturing cost of the third product would be $48, $45, and $50 in Plants 1, 2, and 3, respectively, whereas Plants 4 and 5 do not have the capability for producing this product. Sales forecasts indicate that 700, 1,000, and 900 units of products 1, 2, and 3, respectively, should be produced per day. Plants 1, 2, 3, 4, and 5 have the capacity to produce 400, 600, 400, 600, and 1,000 units daily, respectively, regardless of the product or combination of products involved. Assume that any plant having the capability and capacity to produce them can produce any combination of the products in any quantity. Management wishes to know how to allocate the new products to the plants to minimize total manufacturing cost. (a) Formulate this problem as a transportation problem by constructing the appropriate parameter table. (b) Use Excel Solver to obtain an optimal solution.
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...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.