opm homework

1)A firm manufactures bicycle wheels. Given the following costs and quarterly sales forecasts, use the transportation method to design a production plan that will economically meet demand. What is the cost of the plan?

Quarter 1: Sales Forecast 50,000

Quarter 2: Sales Forecast 150,000

Quarter 3: Sales Forecast 200,000

Quarter 4, Sales Forecast 52,000

Inventory carrying cost: $3 per pair of wheels per quarter

Production per employee: 1,000 pairs of wheels per quarter

Regular workforce: 50 workers

Overtime capacity: 50,000 pairs of wheels

Subcontracting capacity: 40,000 pairs of wheels

Cost of regular production: $50 per pair of wheels

Cost of overtime production: $75 per pair of wheels

Cost of subcontracting: $85 per pair of wheels

2) A firm makes five different integrated chip products and has five production lines each of which is dedicated to a particular integrated chip product. The production lines differ by sophistication of machines, sites, and the experience of the production personnel. The following estimate of processing times (in hours) is given; assign the integrated chip products so that the order can be completed as soon as possible.