Operations Management
Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Chapter C, Problem 4DQ
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To determine: How people can identify if the optimal solution has been reached.

Introduction: The major objective of the transportation problem is to minimize the distributing cost of a product from a source to an origin. Transportation problem is one of the types of linear programming.

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Question 1: A manufacturer is trying to determine the combination of two products, A and B, that should be produced. Each product passes through a three-stage production process: Stages I, II and III. For product A: Stage I takes 3 hours of labour, Stage II takes 4 hours and Stage III takes 1 hour. For product B: Stage I takes 4 hours, Stage II takes 2 hours and Stage III takes 3 hours. Product A sells for £38 each unit and B for £40 each unit. At present 11 people are employed on Stage 1, 12 on Stage II and 10 on Stage III, with all employees working 40 hours each week. (a) Formulate this problem in terms of determining the sales-maximising combination of the two products on a weekly basis. (b) Solve the problem graphically. (c) Confirm the solution using simultaneous equations. (d) Identify the binding and non-binding constraints. (e) Undertake sensitivity analysis on each of the binding constraints and evaluate the management information that this generates. (f) If you know that the…
Question 2: A manufacturing company produces 2 products, air conditioners and fan heaters: Each air-conditioner requires 3 hrs of wiring and 2 hrs drilling. Each heater needs 2 hrs wiring and 1 hr drilling. During the next production period, there are 240 hrs of wiring time available and 140 hours of drilling time. Each air-conditioner sold yields a profit of 25€. Each heater can be sold for 15€. Formulate this production-mix Linear Programming problem and find the combination of air-conditioners and heaters which gives the most profit.
Question: B) Identify The Economic Order Quanitity And Consider The Implications For Making An Error In Calculating Economic Order Quanitity. This problem has been solved! See the answer   b) Identify the economic order quanitity and consider the implications for making an error in calculating economic order quanitity.
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