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Q. The Jonny Ho Manufacturing Organization in Columbus, Ohio, is putting out four new electronic components. Each of Ho's four plants has the capacity to add one more product to its current line of electronic parts. The unit-manufacturing costs for producing the different parts at the four plants are shown in the subsequent table. Explain how should Ho assign the new products to the plants to minimize manufacturing costs?

Electronic component Plant
1 2 3 4
C53 $0.10 $0.12 $0.13 $0.11
C81 0.05 0.06 0.04 0.08
D5 0.32 0.40 0.31 0.30
D44 0.17 0.14 0.19 0.15

 

 

Operation Management, Management Studies

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