Cardoso-kes+paper - Cardoso

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Cardoso The Cardoso company is a small manufacturing firm based in Belgium that makes compressed air  drilling equipment used in road and building construction.  The products are made in three work  centers as illustrated in Figure 1.  There are two principal products, No1 which is a smaller unit  principally used for breaking up softer material, and No2 which is a larger unit suitable for heavy  concrete agglomerate.  The products are distributed by company-owned trucks to five distribution  centers as shown in the figure.  The product structure is given in Figures 2 and 3. The operating cost data are shown in Table 1.  In addition to the lead times for the raw materials  shown, another week is needed to carry out quality control of the raw materials and to put it into  storage.  At all the work centers, when the material is produced, it is available one week later in the  downstream work center.  The finished goods from work center No1 are placed the same week in  finished goods storage.  They can then be delivered to the distribution centers one week later. At the end of one particular year, the inventory situation at the production site, at the distribution 
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This note was uploaded on 05/21/2011 for the course ECON 123 taught by Professor Day during the Spring '11 term at Arab Open University, Amman.

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Cardoso-kes+paper - Cardoso

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