A company must meet (on time) the following demands quarter 1|30 units; quarter 2|20 units; quarter...

A company must meet (on time) the following demands quarter 1|30 units; quarter 2|20 units; quarter 3|40 units. Each quarter, up to 27 units can be produced with regular-time labor, at a cost of $40 per unit. During each quarter, an unlimited number of units can be produced with overtime labor, at a cost of $60 per unit. Of all units produced, 25% are unsuitable and cannot be used to meet demand. Also, at the end of each quarter, 10% of all units on hand spoil and cannot be used to meet any future demands. After each quarter's demand is satisfied and spoilage is accounted for, a cost of $15 per unit is assessed against the quarter's ending inventory. Formulate an LP that can be used to minimize the total cost of meeting the next three quarters' demands. Assume that 20 usable units are available at the beginning of quarter 1. (Hint: Define inventory variables to keep track of the number of usable units.)

Solutions

Expert Solution

Colby Messinger answered 1 year ago

Next > < Previous

Related Solutions

During the next four quarters, Dorian Auto must meet (on time) the following demands for cars:...

During the next four quarters, Dorian Auto must meet (on time) the following demands for cars: 4000 in quarter 1; 2000 in quarter 2; 5000 in quarter 3; 1000 in quarter 4. At the beginning of quarter 1, there are 300 cars in stock. The company has the capacity to produce at the most 3000 cars per quarter. At the beginning of each quarter, the company can increase (but not decrease) its production capacity. It costs $100 to increase production...

During the next four quarters Dorian Auto must meet (on time) the following demands for cars:...

During the next four quarters Dorian Auto must meet (on time) the following demands for cars: 4000 in quarter 1; 2000 in quarter 2; 5000 in quarter 3; 1000 in quarter 4. At the beginning of quarter 1, there are 300 cars in stock. The company has the capacity to produce at the most 3000 cars per quarter. At the beginning of each quarter, the company can increase (but not decrease) its production capacity. It costs $100 to increase production...

A city government feels that energy production capacity must be expanded to meet anticipated demands for...

A city government feels that energy production capacity must be expanded to meet anticipated demands for energy. Three alternatives sources are being considered. a. A nuclear facility with an investment of $250 million, operating costs of $3 million per year and life of 20 years. b. A coal plant with an investment of $200 million, operating costs of 10 million per year and a life of 20 years. c. A natural gas plant with a cost of $100 million, operating...

Aztec, Inc. had sales as follows during 2017: Quarter 1 7,000 units Quarter 2 8,000 units...

Aztec, Inc. had sales as follows during 2017: Quarter 1 7,000 units Quarter 2 8,000 units Quarter 3 9,000 units Quarter 4 8,000 units Aztec expects sales in each quarter of 2018 to be 10% more than the respective quarters for 2017. If each unit sells for $100, what amounts will appear as sales revenue in the quarterly sales budgets for 2018? $770,000; $880,000; $990,000; $880,000 $630,000; $720,000; $810,000; $720,000

Coliseum Company has budgeted the following unit sales: Quarter Units Qtr. 1, 2020 60,000 Qtr. 2,...

Coliseum Company has budgeted the following unit sales: Quarter Units Qtr. 1, 2020 60,000 Qtr. 2, 2020 50,000 Qtr. 3, 2020 40,000 Qtr. 4, 2020 80,000 The finished goods inventory on hand on December 31, 2019 was 6,000 units. 90% of the next quarter’s sales will come from production during that quarter, and the remainder of next quarter’s sales will come from this quarter’s ending inventory. Required: Prepare a production budget for the first two quarters of 2020. Include totals...

Vehicle Sales: Consider the data below ( in thousands of units): year Quarter 1 Quarter 2...

Vehicle Sales: Consider the data below ( in thousands of units): year Quarter 1 Quarter 2 Quarter 3 Quarter 4 2016: 4072 4521 4452 4418 2017: 4010 4392 4399 4334 2018: 4092 4484 4277 4360 Obtain the seasonal factors and enter them into the appropriate yellow cells below: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Seasonal Factor Using the columns Year and Total (Annual Sales) below, obtain the regression equation from the Excel's Scatter Diagram Year Quarter 1...

Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 2 4...

Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 2 4 5 2 4 5 8 3 1 3 4 4 7 9 10 (a) Choose the correct time series plot. (i) (ii) (iii) (iv) - Select your answer -Plot (i)Plot (ii)Plot (iii)Plot (iv)Item 1 What type of pattern exists in the data? - Select your answer -Positive trend pattern, no seasonalityHorizontal pattern, no seasonalityNegative trend pattern, no seasonalityPositive trend pattern, with seasonalityHorizontal pattern, with...

Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 2 5...

Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 2 5 7 2 0 2 6 3 5 8 10 4 5 8 10 b) Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise. If required, round your...

Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 2 5...

Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 2 5 7 2 0 2 6 3 5 8 10 4 5 8 10 (b) Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise. If required, round your...

White Corporation’s budget calls for the following sales for next year: Quarter 1 90,000 units Quarter...

White Corporation’s budget calls for the following sales for next year: Quarter 1 90,000 units Quarter 3 68,000 units Quarter 2 76,000 units Quarter 4 96,000 units Each unit of the product requires 3 pounds of direct materials. The company’s policy is to begin each quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirements and an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production. Required: 1....

Subjects