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HP is a well known company in producing different types of printers. The demand for a laser printer through the coming five months is 200, 150, 300, 250, and 400 printers, respectively. HP has different production capacities estimated at 180, 230, 430, 300, and 300 for the five months. Backordering is not allowed, but HP may use overtime to fill the immediate demand, if necessary. The overtime capacity for each period is half the regular capacity. The production costs per unit for the five months are $100, $96, $116, $102, and $106, respectively. The overtime production cost per engine is 50% higher than the regular production cost. If an engine is produced now for use in later periods, an additional storage cost of $4 per engine per period is incurred. Formulate the problem as a transportation model. Then use TORA to find the optimum number of printers to be produced during regular time and overtime of each month.

Operation Management, Management Studies

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