Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 29 Jan 2018 My Price 5.00

Steelco’s costs

During the next three months, Steelco faces the following demands for steel: 100 tons (month 1); 200 tons (month 2); 50 tons (month 3). During any month, a worker can produce up to 15 tons of steel. Each worker is paid $5,000 per month. Workers can be hired or fired at a cost of $3,000 per worker fired and $4,000 per worker hired (it takes 0 time to hire a worker). The cost of holding a ton of steel in inventory for one month is $100. Demand may be backlogged at a cost of $70 per ton month. That is, if 1 ton of month 1 demand is met during month 3, then a backlogging cost of $140 is incurred. At the beginning of month 1, Steelco has 8 workers. During any month, at most 2 workers can be hired. All demand must be met by the end of month 3. The raw material used to produce a ton of steel costs $300. Formulate an LP to minimize Steelco’s costs.

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Status NEW Posted 29 Jan 2018 10:01 PM My Price 5.00

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