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A manufacturing company has a pool of 50 labor hours. A customer has requested two products, Product A and Product B, and has requested 15 and 20 of each respectively. It requires 2 hours of labor to produce Product A and 3 hours of labor to produce Product B. The company can obtain up to 50 additional hours of labor if required. In-house labor costs $25 per hour while contracted labor costs $45 per hour.

Draw the network flow model that captures this problem.

Write out the LP formulation for this problem.

Solve this system – the network flow problem. [Provide a screen shot of your Solver solution and/or any Solver Reports you deem necessary.]

What is the company’s labor plan to develop the products, A and B, to fulfill the customer’s order? And, what is the associated cost to the company?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93120897

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