1
GATE ME 2000
Numerical
+5
-0
The forecasts for a product for the next three months are given as $$750,850$$ and $$1000$$ units. The number of regular time days and overtime days available are $$22,18,$$ $$22$$ and $$4,$$ $$4,5$$ respectively. With the existing number of employees, the company can produce $$38$$ units per day. To meet the high demand in the third month, the company decides to hire people to increase the daily production to $$45$$ units.

The following costs are given :
Cost of regular time production $$=$$ Rs. $$20$$ per unit
Cost of overtime production $$=$$ Rs. $$25$$ Per unit
Cost of hiring $$=$$ $$200{L^2}$$
where $$'L'$$ is the increase in daily capacity

Inventory $$=$$ Rs. $$10$$ per unit per month (based on average inventory)
Shortage (back-ordering cost) $$=$$ Rs. $$20$$ per unit per month

The beginning inventory is $$100$$ units. The company decides to produce $$800,$$ $$700$$ and $$900$$ units respectively in the three months. Compute the cost of the production plan.

GATE ME Subjects
Engineering Mechanics
Machine Design
Strength of Materials
Heat Transfer
Production Engineering
Industrial Engineering
Turbo Machinery
Theory of Machines
Engineering Mathematics
Fluid Mechanics
Thermodynamics
General Aptitude
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