.Back-ordering is not allowed,
but the manufacturer may use overtime to fill the immediate demand, if necessary.
The overtime capacity for each period is half the regular capacity. The production costs
per unit for the five periods are $100, $96, $116, $102, and $106, respectively. TIle overtime
production cost per engine is 50% higher than the regular production cost. If an engine
is produced now for use in later periods, an additional storage cost of $4 per engine
per period is incurred. Formulate the problem as a transportation model. Determine the
optimum number of engines to be produced during regular time and overtime of each
period.
.Back-ordering is not allowed,but the manufacturer may use overtime to fill the immediate demand, if necessary.The overtime capacity for each period is half the regular capacity. The production costsper unit for the five periods are $100, $96, $116, $102, and $106, respectively. TIle overtimeproduction cost per engine is 50% higher than the regular production cost. If an engineis produced now for use in later periods, an additional storage cost of $4 per engineper period is incurred. Formulate the problem as a transportation model. Determine theoptimum number of engines to be produced during regular time and overtime of eachperiod.
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