Byron's Manufacturing Makes Tables

question 75

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;back orders 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.
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 back ordering? When;why?

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Definitions:

Myelination

The process of coating the axons of neurons with a fatty myelin sheath, improving the speed and efficiency of neural signal transmission.

Cortical Development

The process related to the growth and maturation of the cerebral cortex, a critical area of the brain involved in high-level functions like thought and language.

Thumb

The first digit of the human hand, located opposite the other four fingers, pivotal for gripping and manipulating objects, distinguishing humans from most other primates.

Forefinger

The first finger next to the thumb, also known as the index finger, used for pointing and grasping.