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Buckeye Manufacturing produces heads for engines used in the manufacture of trucks. The production line is highly complex, and it measures 900 feet...

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Buckeye Manufacturing produces heads for engines used in the manufacture of
trucks . The production line is highly complex , and it measures 900 feet in length . Two
types of engine heads are produced on this line : the P-Head and the H-Head . The P-
Head is used in heavy duty trucks and the H-Head is used in smaller trucks . Because
only one type of head can be produced at a time , the line is either set up to
manufacture the P-head or the H-Head but not both . Changeovers are made oer a
weekend ; costs are $500 in going from a setup for the P-Head to a setup for the H-
Head , and vice versa . When set up for the P-head , the maximum production rate is
100 units per week and when set up for the H-Head , the maximum production rate is
80 per week .
Buckeye just shut down for the week after using the line to produce the P-Head . The
manager wants to plan production and changeovers for the next eight weeks .
Currently , Buckeye's inventory consists of 125 P-Head and 143 H-Heads . Inventory
carrying costs are charged at annual rate of 19 . 5% of the value of the inventory . The
production cost for the P-Head is $ 225 , and the production cost for the H-Head is
$310 . The objective is developing a production schedule is to minimize the sum of
production cost , plus inventory carrying cost , plus changeover cost .
Buckeye received the following requirements schedule form its customer ( an engine
assembly plant ) for the next nine weeks
Product Demand
Week
P- Head
H- Head
55
38
I
2
55
38
3
44
30
O
O
45
48
O V a VID {
45
48
36
58
35
, in {
35
58
Safety stock requirements are such that week-ending inventory must provide for at
least 80% of the next week's demand .
Prepare a report for Buckeye's management with a production and changeover

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