Operational Management sum.. pls help

manjistha

New member
Joined
Jun 15, 2008
Messages
1
PP 5 ABC has demands for beams of four different strengths. Strength of a beam depends on its unit weight, higher weight implying higher strength. Manufacture of beams of each type of strength requires an expensive set up cost. A beam of higher strength can be used to meet the demand for beams of lower strength (note the extra cost of material involved in such case). The relevant data is given below.

Strength 1 2 3 4
Unit weight (kg) 6 9 11 14
Set up cost (Rs.) 2400 2600 2800 3000
Demand (units) 80 90 80 100
(cost per unit weight of material = Rs.10/kg)

Pls reply tru or false.. Producing 180 of strength 4 and 170 of strength 2 is optimal. ?
 
Looks like it works this way:
3000 + 180(14)(10) = 28200
2600 + 170(9)(10) = 17900
Total = 28200 + 17900 = 46100

Answer is true; $46,100 is lowest possible "combo".
 
Top