A Foreman Is Trying to Assign Crews to Produce the Maximum

question 19

Essay

A foreman is trying to assign crews to produce the maximum number of parts per hour of a certain product.He has three crews and four possible work centers.The estimated number of parts per hour for each crew at each work center is summarized below.Solve for the optimal assignment of crews to work centers.

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Definitions:

Shortage Costs

Costs incurred as a result of insufficient inventory, including potential lost sales, backorder handling, and decreased customer satisfaction.

Carrying Costs

The total cost of holding inventory, including storage, maintenance, insurance, and opportunity costs.

Opportunity Cost

The foregone benefit that could have been obtained from an option not chosen.

Inventory Holding

The costs associated with storing unsold goods, including warehousing, insurance, and depreciation.