A Manager Is Applying the Transportation Model of Linear Programming

question 87

Essay

A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units and in period 2 demand is 150 units. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 50 hours of overtime are available for $15/hour each period. If holding costs are $2 per unit each period, how many hours of regular employment should be used in period 1 (assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour)?

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Definitions:

Competitive Advantage

The unique attributes or circumstances that enable a business to outperform its competitors.

Unnecessary Expense

Costs that are not essential for the operation or growth of a business or personal finances, often identified for reduction or elimination in budgeting efforts.

Employee Relations

An HR discipline concerned with strengthening the employer-employee relationship through measuring job satisfaction, employee engagement, and resolving workplace conflicts.

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The process of gathering and analyzing data on the perceptions, opinions, or feelings of individuals or groups towards specific subjects or issues.