Question

Your company has three factories that are located in Wichita, Kansas, Seattle, Washington, and Omaha. Nebraska Each site produces the same consumer product, but each has a different set of advantages and disadvantages. Therefore, the cost schedule for producing a given number of units is different for each plant All of the unit numbers are for daily production runs. The company receives orders from its retailers on a just-in-time inventory model, so we will assume that the entire order must be filled on the day it is ordered. For each factory. you must first consider the special circumstances and how its cost function is affected. As the company's production analyst, your goal is to Use your knowledge of the three plants to decide how each day's orders should be manufactured so that the company's overall cost per unit is minimized. with grapgh.​

Answer 1

To minimize the company's overall cost per unit, we need to determine which plant should produce each day's orders based on their respective cost functions. We can use a graph to visualize the cost schedule for each plant, where the x-axis represents the number of units produced and the y-axis represents the cost per unit.

We can plot the cost schedules for each plant on the same graph and find the point of intersection where the cost per unit is the same for two plants. At this point, we can choose the plant with the lower cost per unit to produce that day's orders.

If there are three plants, we can repeat this process for all three pairs of plants and find the optimal combination for each day's orders.