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The Boswell Manufacturing Corporation makes and sells dishwashers. Orders have been received from several retail stores for delivery at the end of each of the next three months: June 195 units demanded, July 215 units demanded, and August 205 units demanded. Due to limited capacity, only 200 dishwashers can be made each month on regular labor time, and the cost is $300 each. However, an additional 15 units per month can be produced if overtime is used, but the cost goes up to $325 per dishwasher. Also, if there are any dishwashers produced in a month that are not sold in that month, then there is a $20 per unit cost to carry them to the next month. Build a linear programming spreadsheet in Excel to determine how many units to produce in each month on regular time and how many to produce on overtime, to minimize the total costs while meeting the demands.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92179821

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