A Cement Company Has Three Factories That They Identify as Alpha

question 9

Essay

A cement company has three factories that they identify as Alpha, Beta, and Gamma.They supply cement to three warehouses that they call X, Y, and Z.The company wants to determine how much cement should be shipped from each factory to each warehouse to minimize shipping costs.The cost to ship each 100-pound bag, along with warehouse requirements and factory capacities in bags are shown in the table below:

a.How many decision variables are there in this problem?
b.What is (are) the constraint(s) corresponding to Factory Alpha?
c.How many constraints are required for this problem?

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Definitions:

Total Overhead Variance

The difference between actual overhead costs incurred and overhead costs allocated to production, based on standard rates, during a specific period.

Direct Labor Price Variance

A measure of the difference between the actual cost of direct labor and the standard cost of direct labor multiplied by the actual hours worked.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service, often used to allocate labor costs to products or services.

Standard Rate of Pay

The fixed amount of money paid to employees for a specific job or activity, typically expressed on an hourly or annual basis.