Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter D, Problem 24P
Revisit Problem 22 on the Bull Grin Company. Some cost and demand parameters have changed. Producing 1,000 pounds of supplement now costs $830 on regular time and $910 on overtime. No additional cost is incurred for unused regular-time, overtime, or subcontractor capacity. Overtime is limited to production of a total of 20,000 pounds per quarter. In addition, subcontractors can be hired at $1,000 per 1,000 pounds, but only 30,000 pounds per quarter can be produced this way.
The current level of inventory is 40,000 pounds, amid management wants to end the year at that level. Holding 1,000 pounds of feed supplement in inventory per quarter costs $100. The latest annual
Use the transportation method of production planning in POM for Windows to find the optimal production plan and calculate its cost, or use the spreadsheet approach to find a good production plan amid calculate its cost.
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Chapter D Solutions
Operations Management: Processes and Supply Chains (11th Edition)
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