PRIN OF OPS MGMT W/MYOMLAB&ACCESS BADGE
PRIN OF OPS MGMT W/MYOMLAB&ACCESS BADGE
1st Edition
ISBN: 9781323818510
Author: HEIZER
Publisher: PEARSON C
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Chapter 13, Problem 18P
Summary Introduction

To determine: The minimum cost using the transportation method.

Introduction: Aggregate planning using transportation method helps to attain minimum cost using the optimal plan. The major advantage of transportation method is to achieve the optimal solution using optimal plans.

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Jerusalem Medical​ Ltd., an Israeli producer of portable kidney dialysis units and other medical​ products, develops a​ 4-month aggregate plan. Demand and capacity​ (in units) are forecast as​ follows:                                                                                                                    Capacity Source Month 1 Month 2 Month 3 Month 4 Labor               Regular time 245 265 300 300       Overtime 15 24 26 22 Subcontract 14 15 13 15 Demand 260 304 331 305 The cost of producing each dialysis unit is $875 on regular​ time, ​$1310 on​ overtime, and $1500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation​ method, the optimal cost is ???​$ ​(enter your response as a whole​ number).
AlwaysRain Irrigation, Incorporated would like to determine capacity requirements for the next four years. Currently two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows:   YEARLY DEMAND 1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s) Plastic 90 32 44 55 56 Plastic 180 15 16 17 18 Plastic 360 50 55 64 67 Bronze 90 7 8 9 10 Bronze 180 3 4 5 6 Bronze 360 11 12 15 18 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one…
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