Ques.5 A manufacturer must produce a product in sufficient quantity to meet contractual sales in next four months. The production capacity and unit cost of production vary from month to month. The product produced in one month may be held for sale in later months but at an estimated storage cost of Re.1 per unit per month. No storage cost is incurred for goods sold in the same month in which they are produced. There is no opening inventory and none is desired at the end of four months. The necessary details are given in the following table: Month Contracted Sales 1 2 234 3 4 20 30 50 40 Maximum Unit Cost of Production 40 50 30 50 Production 14 16 15 17 How much should the manufacturer produce each month to minimize total cost?
Ques.5 A manufacturer must produce a product in sufficient quantity to meet contractual sales in next four months. The production capacity and unit cost of production vary from month to month. The product produced in one month may be held for sale in later months but at an estimated storage cost of Re.1 per unit per month. No storage cost is incurred for goods sold in the same month in which they are produced. There is no opening inventory and none is desired at the end of four months. The necessary details are given in the following table: Month Contracted Sales 1 2 234 3 4 20 30 50 40 Maximum Unit Cost of Production 40 50 30 50 Production 14 16 15 17 How much should the manufacturer produce each month to minimize total cost?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.