A Manager Is Applying the Transportation Model of Linear Programming

question 36

Multiple Choice

A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units, 100 units in period 2, and 175 units in period 3. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 25 hours of overtime are available for $15/hour each period. If holding costs are $6 per unit each period, how many hours of overtime should be used in period 2? (Assume demand must be met in all periods for the lowest possible cost and that production is 1 unit per hour.)

• A) 0
• B) 5
• C) 15
• D) 20
• E) 25

---

Definitions:

Supply Chain

A system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Relationship Marketing

A strategy designed to foster customer loyalty, interaction, and long-term engagement rather than focusing solely on short-term goals such as customer acquisition and sales.

Production Orientation

A business approach that focuses primarily on the efficiency of production processes and product improvement, often at the expense of consumer needs and desires.

Display Advertising

A form of online advertising where marketers use banner ads and other visual ad formats to promote their products on websites, apps, or social media.