A linear programming computer package is needed. EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown, the management team does not think a smooth production schedule with the same production quantity each month possible. February March April Sales forecast 15,000 16,500 20,000 Production capacity 14,000 14,000 18,000 Storage capacity 6,000 6,000 6,000 The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00 for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by $0.65 for each unit decrease in the production level. Ignoring production and inventory carrying costs, formulate a linear programming model that will minimize the cost (in dollars) of changing production levels while still satisfying the monthly sales forecasts. (Let F = number of windows manufactured in February, M = number of windows manufactured in March, A = number of windows manufactured in April, I1 = increase in production level necessary during month 1, I2 = increase in production level necessary during month 2, I3 = increase in production level necessary during month 3, D1 = decrease in production level necessary during month 1, D2 = decrease in production level necessary during month 2, D3 = decrease in production level necessary during month 3, s1 = ending inventory in month 1, s2 = ending inventory in month 2, and s3 = ending inventory in month 3.) Min s.t.February Demand March Demand April Demand Change in February Production Change in March Production Change in April Production February Production Capacity March Production Capacity April Production Capacity February Storage Capacity March Storage Capacity April Storage Capacity Find the optimal solution. (F, M, A, I1, I2, I3, D1, D2, D3, s1, s2, s3) = Cost = $
A linear programming computer package is needed. EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown, the management team does not think a smooth production schedule with the same production quantity each month possible. February March April Sales forecast 15,000 16,500 20,000 Production capacity 14,000 14,000 18,000 Storage capacity 6,000 6,000 6,000 The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00 for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by $0.65 for each unit decrease in the production level. Ignoring production and inventory carrying costs, formulate a linear programming model that will minimize the cost (in dollars) of changing production levels while still satisfying the monthly sales forecasts. (Let F = number of windows manufactured in February, M = number of windows manufactured in March, A = number of windows manufactured in April, I1 = increase in production level necessary during month 1, I2 = increase in production level necessary during month 2, I3 = increase in production level necessary during month 3, D1 = decrease in production level necessary during month 1, D2 = decrease in production level necessary during month 2, D3 = decrease in production level necessary during month 3, s1 = ending inventory in month 1, s2 = ending inventory in month 2, and s3 = ending inventory in month 3.) Min s.t.February Demand March Demand April Demand Change in February Production Change in March Production Change in April Production February Production Capacity March Production Capacity April Production Capacity February Storage Capacity March Storage Capacity April Storage Capacity Find the optimal solution. (F, M, A, I1, I2, I3, D1, D2, D3, s1, s2, s3) = Cost = $
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
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A linear programming computer package is needed.
EZ-Windows, Inc., manufactures replacement windows for the home remodeling business. In January, the company produced 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows' management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown, the management team does not think a smooth production schedule with the same production quantity each month possible.
| February | March | April | |
|---|---|---|---|
| Sales |
15,000 | 16,500 | 20,000 |
| Production capacity | 14,000 | 14,000 | 18,000 |
| Storage capacity | 6,000 | 6,000 | 6,000 |
The company's cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1.00 for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by $0.65 for each unit decrease in the production level. Ignoring production and inventory carrying costs, formulate a linear programming model that will minimize the cost (in dollars) of changing production levels while still satisfying the monthly sales forecasts. (Let F = number of windows manufactured in February, M = number of windows manufactured in March, A = number of windows manufactured in April, I1 = increase in production level necessary during month 1, I2 = increase in production level necessary during month 2, I3 = increase in production level necessary during month 3, D1 = decrease in production level necessary during month 1, D2 = decrease in production level necessary during month 2, D3 = decrease in production level necessary during month 3, s1 = ending inventory in month 1, s2 = ending inventory in month 2, and s3 = ending inventory in month 3.)
Min
s.t.February Demand
March Demand
April Demand
Change in February Production
Change in March Production
Change in April Production
February Production Capacity
March Production Capacity
April Production Capacity
February Storage Capacity
March Storage Capacity
April Storage Capacity
Find the optimal solution.
(F, M, A, I1, I2, I3, D1, D2, D3, s1, s2, s3) =
Cost = $
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