Develop a production schedule for micro -devices


Micro devices makes a memory expansion board for micro-computers. The company has the following orders over the next six months :

Month 1: 2000 Month 4: 4500
Month 2: 5000 Month 5: 2000
Month 3: 8000 Month 6: 8000

Monthly production capacities are 5000 units on regular time and 1000 units on overtime, and up to 2000 can be subcontracted each month. Production costs are $20per unit on regular time and $25 per unit on overtime; the cost per unit for the components subcontracted is $28. Inventory-holding costs are charged at the rate of $1.00 per unit per month. Use the transportation model to develop a production schedule for Micro -devices over the next six months.

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Develop a production schedule for micro -devices
Reference No:- TGS087713

Expected delivery within 24 Hours