Question

Producing a unit of the product takes 0.6 hours on operation I plus 0.8 hours on operation II. Overproduction of either the semifinished produet (operation I) or the finished product (operation II) in any month is allowed for use in a later month. The corresponding holding costs are 50.2 and 50.4 per unit per month. The production cost varies by operation and by month. For operation I,the unit production cost is $10,512 and 511 for June, July and August. For operation I1, the corresponding unit production cost is $15,518 and $16.

Determine the optimal production schedule for the two operations over the 3-month horizon.

Answer 1

The question involves finding an optimal production schedule considering operation times, holding costs, and variable production costs. The correct approach requires operations research techniques like linear programming or inventory management models. Additional data on monthly demand is needed for a complete solution.

Step-by-step explanation:

The student's question pertains to finding the optimal production schedule for two operations over a three-month period, considering operation times, holding costs, and changing unit production costs. The use of the provided figures is not directly relevant, as they discuss economices of scale and average cost of production for different plant sizes, and do not directly relate to scheduling production considering holding and production costs.

To solve the student's query, we would typically use operations research techniques such as linear programming or an inventory management model to minimize total costs over the period. However, the question as phrased lacks specific quantity demand for each month, which is critical for determining the optimal production schedule. The student is recommended to provide this additional data or review their course material on relevant inventory management models to approach the problem.