You manage a production line that operates using a monthly production cycle. There are five different...

You manage a production line that operates using a monthly production cycle. There are five different products that could be made this month. However, you only have 500 hours of line capacity, so you must be careful which products you select to make in the production cycle.

Making a product incurs two types of setup costs: (1) a material “tear down” cost (measured in dollars) and (2) downtime for line preparation (measured in hours). Any quantity up to the forecasted monthly demand can be sold. Additional production details are given in the table below:

	Product 1	Product 2	Product 3	Product 4	Product 5
Monthly Demand	1000 units	1100 units	1700 units	1600 units	1500 units
Revenue (per unit)	$150	$175	$155	$200	$225
Production Cost (per unit)	$60	$70	$60	$100	$110
Set Up Cost	$10000	$15000	$25000	$10000	$5000
Set Up Time	25 hrs	15 hrs	0 hrs	10 hrs	30 hrs
Production Time (per unit)	.1 hrs	.12 hrs	.13 hrs	.15 hrs	.16 hrs

Based on this information, design a monthly production schedule to maximize monthly profit. Your solution should identify which products to make and the quantities of each. (Assume the line is not currently set up to make any of these products; Set Optimality Gap to .1%)
If you could go to a two-month production cycle with the same monthly demands and the same monthly capacity, would you select different products and quantities? (Again assume the line is not currently set up to make any of these products; Set Optimality Gap to .1%)

Expert Solution

for two month production cycle, set up cost is applied once and hence the difference is there

in one month cycle, product 4 and 5 are abondoned to reach the maximum profit of $277885 with the time constraint of 500 hrs in a month

however in two months production cycle, only product 4 is abondoned to reach the maximum profit of $679063 with the constraint of 1000 hrs and one time set up cost

ekkarill92 answered 6 months ago

Assume that a production line operates such that the production lot size model of is applicable. Assume...

Assume that a production line operates such that the production lot size model of is applicable. Assume that D = 6,500 units per year, Co = $120, and Ch = $3 per unit per year. a. i. 8,300 units per year ii. 11,000 units per year iii. 34,500 units per year iv. 90,000 units per year If required, round your answers to the nearest whole number. i. P = 8,300 Q* = ii. P = 11,000 Q* = iii. P =...

You manage an assembly line operation that manufactures automobile steering wheels. Your current production schedule is...

You manage an assembly line operation that manufactures automobile steering wheels. Your current production schedule is 5 days per week, 2 eight hour shifts per day. The new demand forecast has added a new customer and requires for us to increase production by 10% for the next 5 weeks. Give to me at least 2 scheduling options for meeting the demand.

A manufacturing company operates two production lines.when both lines are operating,the production rate on each line...

A manufacturing company operates two production lines.when both lines are operating,the production rate on each line is 500 units per hour.At this production rate on each line is 500 per hour.At this production rate the failure rate of line 1 is 3 failures per 8-hr day(CFR) and the failure rate of line 2 is 2 failures per 8-hr day.when one line fails.the production rate of the second line must be increased in order to make production quotas.At the increased rate...

The Toyota Motor Company is a global automobile manufacturer that operates on five different continents. In...

The Toyota Motor Company is a global automobile manufacturer that operates on five different continents. In the United States, it runs five major assembly plants. To manage its operations efficiently and effectively around the globe, Toyota uses several types of information systems. It uses the Internet and global networks to communicate with its offices, plants, and dealerships around the globe. Toyota is one of the founders of the Toyota Production System, an early version of the Just In Time (JIT)...

You are to carry out a research using the internet and identify at least five different...

You are to carry out a research using the internet and identify at least five different innovative ideas for intersection or road design to improve Road Safety and/or traffic flow. For each idea, provide a description of the idea, a photo or illustration of the design, where has it been used, advantages and disadvantages of the idea, and the source of the information (internet webpage/link will be sufficient).

Contrast the challenges of using input controls to manage a fishery with many different inputs, such...

Contrast the challenges of using input controls to manage a fishery with many different inputs, such as long-line tuna, compared to a fishery with few inputs, such as rock lobster.

Sage Corporation is a diversified company that operates in five different industries: A, B, C, D,...

Sage Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2018. A B C D E Sales revenue $40,600 $75,500 $571,400 $34,700 $56,000 Cost of goods sold 19,000 49,000 265,800 18,900 30,300 Operating expenses 9,900 39,800 231,800 12,300 17,900 Total expenses 28,900 88,800 497,600 31,200 48,200 Operating profit (loss) $11,700 $(13,300) $73,800 $3,500 $7,800 Identifiable assets $35,500 $80,300 $499,500 $65,800 $49,400 Sales...

Bridgeport Corporation is a diversified company that operates in five different industries: A, B, C, D,...

Bridgeport Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales revenue $40,400 $74,700 $588,100 $35,400 $54,700 Cost of goods sold 19,200 49,800 265,600 19,200 30,100 Operating expenses 10,100 40,300 238,200 12,000 17,900 Total expenses 29,300 90,100 503,800 31,200 48,000 Operating profit (loss) $11,100 $(15,400) $84,300 $4,200 $6,700 Identifiable assets $34,700 $81,400 $501,600 $64,700 $50,300 Sales...

Carla Corporation is a diversified company that operates in five different industries: A, B, C, D,...

Carla Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2018. A B C D E Sales revenue $40,100 $75,800 $580,100 $35,700 $53,900 Cost of goods sold 18,800 50,000 269,200 19,200 29,400 Operating expenses 9,800 39,600 235,400 12,300 18,200 Total expenses 28,600 89,600 504,600 31,500 47,600 Operating profit (loss) $11,500 $(13,800) $75,500 $4,200 $6,300 Identifiable assets $35,000 $81,200 $494,400 $64,600 $49,50 Sales...

Describe in general terms how the five-carbon precursor to the production phase of the calvin cycle...

Describe in general terms how the five-carbon precursor to the production phase of the calvin cycle is regenerated from three carbon products of the cycle

Question