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A Manager Is Applying the Transportation Model of Linear Programming

question 26

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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 $6 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:

Maturation

The process of development in which an individual matures or reaches full functionality.

Imprinting

The process by which certain animals form strong attachments during early life.

Critical Period

A particular period in development where learning specific skills or abilities is easiest.

Optimal Period

A time frame during which a particular developmental and learning opportunity is most effective.

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