Beeliner Corporation makes washer/dryer combo units that use less energy. Orders
ID: 1197090 • Letter: B
Question
Beeliner Corporation makes washer/dryer combo units that use less energy. Orders have been received from vendors for the following months
MONTH UNITS
_____________________
Feb 170
Mar 230
April 230
Due to limited capacity, only 200 of these can be made on regular time, and the cost is $250. However, an extra 60 units per month can be produced on overtime. The cost is $285 instead. Also if there are any units produced that are not sold in that month, there is a cost of $10 to carry the item to the next month. Using linear programming, please help find the optimal solution for units to be produced during regular time and overtime (hints: you need 6 variables). What is the total cost of production to meet the orders for the three months?
Explanation / Answer
In Feb :-
Demand = 170 units
200 units made at 250 $ cost
30 units carry forward next month. So, total cost for Feb = 250+10 = 260$
In Mar :-
Demand = 230 units
200 units made at 250 $ cost and 30 units carry forward from Feb
So, total cost = 250$
In Apr :-
Demand = 230 units
200 units made at 250 $ cost and 60 units via overtime
So, total 260 units at 285$
Remaining = 260- 230 = 30 units carry forward at 10$
so, total cost = 285+10 = 295$
Total cost of production = 260+250+295 = 805$
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