A Manager Is Applying the Transportation Model of Linear Programming

question 26

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, 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.)

• A) 100
• B) 125
• C) 150
• D) 50
• E) none of these

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Definitions:

Organization

An entity comprising multiple people, such as a company, institution, or association, structured to achieve specific goals or perform tasks.

Work Underload

A situation in which an employee has too few tasks or not enough work to fill their time, potentially leading to boredom and disengagement.

Micromanagement

Micromanagement is a management style characterized by excessive control or attention to details, often resulting in a lack of autonomy for subordinates.

Interpersonal Relations

The connections and interactions between two or more people, often analyzed in a social or work context.