Unformatted text preview: duction of 4,000 units
at 3 and 0 overtime at 1. The all-plant optima have no use of
overtime and include substantial idle regular time capacity:
11,000 units (55%) in Plant 2 and either 5,000 units in 1 (19% of
capacity) or 5,000 in 3 (20% of capacity). The idled capacity
versus unemployment question is an interesting, nonquantitative
aspect of the case and could lead to discussion of the forecasts for
the housing market and thus the plant’s product.
The optimum producing and shipping pattern is:
From To (Amount) Plant 1 (R.T.)
Plant 3 (R.T.)
Plant 3 (O.T.) W2 (13,000); W4 (14,000)
W1 (5,000); W3 (11,000); W4 (1,000); W5 (8,000)
W1 (4,000) There are three alternative optimal producing and shipping
patterns. This video case study works best if the short video (10½ min.),
created specifically for this text, is shown and accompanies the
written case. It is found at www.myomlab.com.
1. The Orlando Magic system differs significantly from the
revenue (yield) management system used by airlines—...
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- Spring '14