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# Managing A Small Manufacturing Facility

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You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.

No. of workers Total Labor Cost Output Total Revenue
1 \$145 100 \$190
2 290 105 380
3 435 111 840
4 680 120 1320
5 725 125 1650
6 870 129 1780
7 1015 131 1800

- What is the marginal product of the third worker?
- What is the marginal revenue product of the fourth worker?
- What is the marginal cost of the sixth worker?
- Based on your knowledge of marginal analysis, how many workers should you hire? Explain you answer.

https://brainmass.com/economics/output-and-costs/managing-a-small-manufacturing-facility-493372
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## This posting provides different problems on operation management including assignment and transportation problems for hardrock concrete company, ashley's auto top carriers and State of Missouri.

10-7
What is the enumeration approach to solving assignment problems? Is it a practical way to solve a 5 row X 5 column problem? A 7X7 problem? Why?
10-13
The hardrock concrete company has plants in three locations and currently working on 3 major construction projects, each located at a different site. The shipping cost per truckload of concrete, daily plant capacities, and daily plant requirements are provided in the table
from/to PROJECT A PROJECT B PROJECT C Plant capacities
PLANT 1 10 4 11 70
PLANT 2 12 5 8 50
PLANT 3 9 7 6 30
PROJECT REQUIREMENTS 40 50 60 150

1. Formulate an initial feasible solution to hardrock's transportation problem using the northwest corner rule. Then evaluate each unused shipping route by computing all improvement indices. Is this solution optimal? Why
2. Is there more than one optimal solution to this problem? Why?

`10-24
Ashley's Auto Top Carriers currently maintains plants in Atlanta and Tulsa that supply major distribution centers in Los Angeles and New York. Because of an expanding demand, Ashley has decided to open a third plant and has narrowed the choice to one of two cities-New Orleans or Houston. The pertinent production and distribution costs, as well as the plant capacities and distribution demands, are shown in the table.
from/to LA NY NORMAL PRODUCTION UNIT PRODUCTION
ATLANTA 8 5 600 6
TULSA 4 7 900 5
NEW ORLEANS 5 6 500 4 ANTICIPATED
HOUSTON 4 6 500 3 ANTICIPATED
FORECAST DEMAND 800 1200 2000

Which of the new possible plants should be opened?

10-19
The state of Missouri had three major power-generating companies (A, B, and C). During the months of peak demand, the Missouri Power Authority authorizes these companies to pool their excess supply and to distribute it to smaller independent power companies that do not have generators large enough to handle the demand. Excess supply is distributed on the basis of cost per kilowatt hour transmitted. The following table shows the demand and supply in millions of kilowatt hours and the cost per kilowatt hour of transmitting electric power to four small companies in cities W, X, Y, and Z:
from/to W X Y Z EXCESS SUPPLY
A 12 4 9 5 55
B 8 1 6 6 45
C 1 12 4 7 30
Unfilled power demand 40 20 50 20 150

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