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Case Solution question 3

Fixed cost Variable costs Distribution Centers

operating non-operating regular overtime Wing 1 Wing 2 Wing 3 Wing 4


Plant 1 14000 6000 2.8 3.52 0.5 0.44 0.49 0.46
Plant 2 12000 5000 2.78 3.48 0.4 0.52 0.5 0.56
Plant 3 15000 7500 2.72 3.42 0.56 0.53 0.51 0.54

9000 13000 11000 15000

Plant 1 is closed

wing 1 wing 2 wing 3 wing 4 wing 5 Sum regular overtime


Plant 2 9000 5000 11000 0 0 25000 20000 5000
Plant 3 0 8000 0 15000 8000 31000 25000 6000

sum 9000 13000 11000 15000 8000


demands 9000 13000 11000 15000 8000
56000

Objective
Function 221360

Plant 2 is closed

wing 1 wing 2 wing 3 wing 4 wing 5 Sum regular overtime


Plant 1 0 13000 0 14000 0 27000 27000 0
Plant 3 9000 0 11000 1000 8000 29000 25000 4000

sum 9000 13000 11000 15000 8000


demands 9000 13000 11000 15000 8000

Objective
Function 217430

Plant 3 is closed

wing 1 wing 2 wing 3 wing 4 wing 5 Sum regular overtime


Plant 1 0 13000 0 15000 3000 31000 27000 4000
Plant 2 9000 0 11000 0 5000 25000 20000 5000

sum 9000 13000 11000 15000 8000


demands 9000 13000 11000 15000 8000

Objective
Function 222430
enters

Wing 5 capacity overtime


0.56 27000 7000
0.57 20000 5000
0.35 25000 6000

8000

Total
Productio
n overtime
capacity regular overtime regular cost cost
25000 20000 5000 55600 17400
31000 25000 6000 68000 20520

Total
Productio
n overtime
capacity regular overtime regular cost cost
34000 27000 7000 75600 0
31000 25000 6000 68000 13680
Total
Productio
n overtime
capacity regular overtime regular cost cost
34000 27000 7000 75600 14080
25000 20000 5000 55600 17400

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