Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 3, Problem 32AP
Summary Introduction

To determine:

Optimal plan as a linear program

Introduction

Optimal plan is a plan in which efficiency and effectiveness of all variables are maximized. It is a plan in which worker’s output is maximum while keeping cost and time minimized.

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A local firm manufactures children’s toys. The projected demand over the next four months for one particular model of toy robot is (given) Assume that a normal workday is eight hours. Hiring costs are $350 per worker and firing costs (including severance pay) are $850 per worker. Holding costs are $4.00 per aggregate unit held per month. Assume that it requires an average of 1 hour and 40 minutes for one worker to assemble one toy. Shortages are not permitted. Assume that the ending inventory for June was 600 of these toys and the manager wishes to have at least 800 units on hand at the end of October. Assume that the current workforce level is 35 workers. Find the optimal plan by formulating as a linear program.
Work−in−Process Inventory has a debit balance of $84,000 and Manufacturing Overhead has a credit balance of $10,000. If an additional $54,000 of direct labor and $1,000 of indirect labor are incurred during​ production, what is the balance of Work−in−Process ​Inventory?   A. $30,000   B. $9,000   C. $138,000   D.
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