Byron's Manufacturing Makes Tables

question 93

Essay

Byron's Manufacturing makes tables. Demand for the next four months and capacities of the plant are shown in the table below. Unit cost on regular time is $40. Overtime cost is 150% of regular time cost. Subcontracting is available in substantial quantity at $75 per unit. Holding costs are $5 per table per month; backorders cost the firm $10 per unit per month. Byron's management believes that the transportation algorithm can be used to optimize this scheduling problem. The firm has 50 units of beginning inventory and anticipates no ending inventory.
Answer the following questions based on the data table and solution table shown below.
Byron's Manufacturing
Byron's Manufacturing Solution
(a) How many units will be produced on regular time in June?
(b) How many units will be produced by subcontracting over the four-month period?
(c) What will be the inventory at the end of April?
(d) What will be total production from all sources in April?
(e) What will be the total cost of the optimum solution?
(f) Does the firm utilize the expensive options of subcontracting and backordering? When; why?

---

Definitions:

Insurance Companies

Businesses that provide protection against financial losses in exchange for regular payments from individuals or entities.

Product Marketing Decisions

Choices and strategies related to the promotion, distribution, design, and pricing of products to maximize their appeal to customers.

Investment Banker

A professional who deals with raising capital, trading securities, and managing corporate mergers and acquisitions.

Long Range

Pertaining to planning or forecasting far into the future, often involving periods of several years or more.