Company ZWZ manufactures three products in a serial system, Product XA is manufactured in Stage 1. Product XB in Stage 2

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Company Zwz Manufactures Three Products In A Serial System Product Xa Is Manufactured In Stage 1 Product Xb In Stage 2 1 (134.83 KiB) Viewed 89 times

Company ZWZ manufactures three products in a serial system, Product XA is manufactured in Stage 1. Product XB in Stage 2 and XC in Stage 3. Product XB has a sales potential in the market, hence, some of it can be sold at the end of Stage 2, and the remaining can be moved to Stage 3. The third stage produces Product XC, and then delivers it to customers. Two units of Product XA produced in Stage 1 are required for each unit of Product XB in Stage 2. In addition, four units of Product XB produced in Stage 2 are required for each unit of Product XC in Stage 3 Stage I can only use regular time, however. Stage 2 has the options of using regular time and overtime in manufacturing. On the other hand, Stage 3 has only one alternative, which is subcontracting. The pertinent data are provided below: Stage 1 Stage 2 Stage Unit regular time cost (TL) 12 No regular time Unit overtime cost (TL) No overtime 18 No overtime No . 22 Unit subcontracting cost (TL) No subcontracting subcontracting Unit selling price (TL) No sales 25 30 Unit processing time (hrs) 0.07 0.09 Regular time capacity (hrs) 320 160 No regular timc Overtime capacity (hrs) No overtime 80 No overtime No Minimum subcontracting volume (units) No subcontracting subcontracting 100 No sales 3300 Maximum sales volume (units) 4500 Formulate the production planning problem of the company as a three- stage model (Define the decision variables explicitly!). Hint: Drawing the system first will help you in modelling.