Problem:
Taiwan Electronics manufactures three (3) models of CB radios, A, B, and C. The estimated demand for the three (3) models is 10,000, 12,000, and 7,000 units, correspondingly. The radios can be produced on one of four (4) accessible production lines: Q, R, S, and T, whose production capabilities are, 6,000, 15,000, 20,000 units, correspondingly. The manufacturing costs diverge among the production lines and are shown in table below (in $ per unit).
|
Model
|
Q
|
R
|
S
|
T
|
|
A
|
60
|
53
|
61
|
50
|
|
B
|
80
|
75
|
81
|
70
|
|
C
|
75
|
70
|
75
|
65
|
The company's objective is to meet all estimated demand at lowest probable manufacturing cost. Use the transportation model to find out the best production schedule.