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A Manufacturer of Industrial Seafood Processing Equipment Wants You to Develop

question 42

Essay

A manufacturer of industrial seafood processing equipment wants you to develop an aggregate plan for the four quarters of the upcoming year using the following data on demand and capacity.
 Regular Over-  Sub-  Initial inventory 250 units  Quarter  Units Time  Time  contract  Regular time cost $1.25 /unit 120040080100 Overtime cost $1.50/ unit 275040080100 Subcontracting  cost 2.00/ unit 31200800160100 Carrying cost $0.50/ unit/quarter  No back ordering 445040080100 is allowed \begin{array}{|l|l|l|l|l|l|}\hline&&\text { Regular}&\text { Over- }&\text { Sub- }&\text { Initial inventory } &250 \text { units }\\\text { Quarter }&\text { Units}&\text { Time }&\text { Time }&\text { contract }&\text { Regular time cost } &\$ 1.25 \text { /unit }\\\hline1&200&400&80&100& \text { Overtime cost } & \$ 1.50 / \text { unit } \\\hline 2&750&400&80&100&\text { Subcontracting } & \\&&&&&\text { cost } & 2.00 / \text { unit } \\\hline3&1200&800&160&100& \text { Carrying cost } & \$ 0.50 / \text { unit/quarter }\\\hline &&&&&\text { No back ordering } & \\4&450&400&80&100&\text { is allowed } &\\\hline \end{array}
a. Find the optimal plan using the transportation method.
b. What is the cost of the plan?
c. Does any regular time capacity go unused?
How much in what periods?
d. What capacity went unused in this solution (list in detail)?

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