MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
11th Edition
ISBN: 9780133885583
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter D, Problem 4P
Summary Introduction
Interpretation: To estimate the minimum amount of operators with the needed demand requirements
Concept Introduction: one kind of problem in linear programming is
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Mercury Electronics must develop a plan to allocate capacity to fulfilling forecasted demand of 400 units in
March, 500 units in April, and 700 units in May. Mercury has 50 units of inventory currently on hand. For
each month, Mercury can produce units as follows:
Regular Time
Month
March
Overtime
50
Subcontracting
100
350
April
400
50
100
May
450
50
100
Assume the following costs:
Regular time cost per unit
$50
Overtime cost per unit
$65
Subcontract cost per unit
$80
Carrying cost per unit per month
$1
Back order cost per unit per month
$4
Develop an Excel model that allocates production capacity to satisfy demand at a minimum cost.
Georgia Cabinets manufactures kitchen cabinets that are sold to local dealers throughout the Southeast. Because of a large backlog of orders for oak and cherry cabinets, the company decided to contract with three smaller cabinetmakers to do the final finishing operation. For the three cabinetmakers, the number of hours required to complete all the oak cabinets, the number of hours required to complete all the cherry cabinets, the number of hours available for the final finishing operation, and the cost per hour to perform the work are shown here:
Cabinetmaker 1
Cabinetmaker 2
Cabinetmaker 3
Hours required to complete all the oak cabinets
50
44
32
Hours required to complete all the cherry cabinets
61
46
34
Hours available
35
25
30
Cost per hour
$36
$43
$56
For example, Cabinetmaker 1 estimates that it will take 50 hours to complete all the oak cabinets and 61 hours to complete all the cherry cabinets. However, Cabinetmaker 1 only has 35 hours available for the final…
Georgia Cabinets manufactures kitchen cabinets that are sold to local dealers throughout the Southeast. Because of a large backlog of orders for oak and cherry cabinets, the company decided to contract with three smaller cabinetmakers to do the final finishing operation. For the three cabinetmakers, the number of hours required to complete all the oak cabinets, the number of hours required to complete all the cherry cabinets, the number of hours available for the final finishing operation, and the cost per hour to perform the work are shown here:
Cabinetmaker 1
Cabinetmaker 2
Cabinetmaker 3
Hours required to complete all the oak cabinets
50
44
32
Hours required to complete all the cherry cabinets
61
46
34
Hours available
35
25
30
Cost per hour
$36
$43
$56
For example, Cabinetmaker 1 estimates that it will take 50 hours to complete all the oak cabinets and 61 hours to complete all the cherry cabinets. However, Cabinetmaker 1 only has 35 hours available for the final…
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MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
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