January 2018
Intermediate to advanced
480 pages
236h 9m
English
The Arctic Air Company produces residential air conditioners. The manufacturing manager wants to develop a sales and operations plan for the next year based on the following demand and capacity data (in hundreds of product units):
Demand |
Regular-time Capacity |
Overtime Capacity |
Subcontractor Capacity |
|
|---|---|---|---|---|
Jan–Feb (1) |
50 |
65 |
13 |
10 |
Mar–Apr (2) |
60 |
65 |
13 |
10 |
May–Jun (3) |
90 |
65 |
13 |
10 |
Jul–Aug (4) |
120 |
80 |
16 |
10 |
Sep–Oct (5) |
70 |
80 |
16 |
10 |
Nov–Dec (6) |
40 |
65 |
13 |
10 |
Totals |
430 |
420 |
84 |
60 |
Undertime is unpaid, and no cost is associated with unused overtime or subcontractor capacity. Producing one air conditioning unit on regular time costs $1,000, including $300 for labor. Producing a unit on overtime costs $1,150. ...
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