Maurice Tutor

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Category > Management Posted 04 Jun 2017 My Price 12.00

MCNFP that can be used to minimize the cost of meeting all demands on time

A company produces a product at two plants, 1 and 2. The unit production cost and production capacity during each period are given in Table.

 

Unit Production

 

 

Cost ($)

Capacity

Plant 1 (period 1)

33

7

Plant 1 (period 2)

43

4

Plant 2 (period 1)

30

9

Plant 2 (period 2)

41

9

The product is instantaneously shipped to the company’s only customer according to the unit shipping costs given in Table.

 

Period 1

Period 2

Plant 1 to customer

$51

$60

Plant 2 to customer

$42

$71

If a unit is produced and shipped during period 1, it can still be used to meet a period 2 demand, but a holding cost of $13 per unit in inventory is assessed. At the end of period 1, at most six units may be held in inventory. Demands are as follows: period 1, 9; period 2, 11. Formulate an MCNFP that can be used to minimize the cost of meeting all demands on time. Draw the network and determine the net outflow at each node, the arc capacities, and shipping costs.

Answers

Maurice Tutor
(5)
Status NEW Posted 04 Jun 2017 11:06 PM My Price 12.00

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