ailco Corporation must determine how many sailboats should be produced during eachof the next four quarters (one quarter three months). The demand during each of thenext four quarters is as follows: first quarter, 40 sailboats; second quarter, 60 sailboats;third quarter, 75 sailboats; fourth quarter, 25 sailboats. Sailco must meet demands ontime. At the beginning of the first quarter, Sailco has an inventory of 10 sailboats. At thebeginning of each quarter, Sailco must decide how many sailboats should be producedduring that quarter. For simplicity, we assume that sailboats manufactured during a quarter can be used to meet demand for that quarter. During each quarter, Sailco can produceup to 40 sailboats with regular-time labor at a total cost of $400 per sailboat. By havingemployees work overtime during a quarter, Sailco can produce additional sailboats withovertime labor at a total cost of $450 per sailboat.At the end of each quarter (after production has occurred and the current quarter’s demand has been satisfied), a carrying or holding cost of $20 per sailboat is incurred. Uselinear programming to determine a production schedule to minimize the sum of production and inventory costs during the next four quarters.
ailco Corporation must determine how many sailboats should be produced during each
of the next four quarters (one quarter three months). The demand during each of the
next four quarters is as follows: first quarter, 40 sailboats; second quarter, 60 sailboats;
third quarter, 75 sailboats; fourth quarter, 25 sailboats. Sailco must meet demands on
time. At the beginning of the first quarter, Sailco has an inventory of 10 sailboats. At the
beginning of each quarter, Sailco must decide how many sailboats should be produced
during that quarter. For simplicity, we assume that sailboats manufactured during a quarter can be used to meet demand for that quarter. During each quarter, Sailco can produce
up to 40 sailboats with regular-time labor at a total cost of $400 per sailboat. By having
employees work overtime during a quarter, Sailco can produce additional sailboats with
overtime labor at a total cost of $450 per sailboat.
At the end of each quarter (after production has occurred and the current quarter’s demand has been satisfied), a carrying or holding cost of $20 per sailboat is incurred. Use
linear programming to determine a production
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