Formulating problem as transportation model


Assignment:

The demand for a special small engine over the next five quarters is 200, 150, 300, 250 and 400 units, respectively. The manufacturer supplying the engine has different production capacities estimated t 180, 230, 430, 300 and 300 for the five quarters. Back-ordering is not allowed, but the manufacturer may use overtime to fill the immediate demand, if necessary. The overtime capacity for each period is half the regular capacity. The production costs per unit for the five periods are $100, $96, $116, $102 and $106, respectively. The overtime production cost per engine is 50% higher than the regular production cost. If an engine is produced now for use in later periods, an additional storage cost of $4 is incurred. Formulate the problem as a transportation model.

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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Operation Management: Formulating problem as transportation model
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