The production planning period for flat-screen monitors at Louisiana's Roa Electronics. Inc., is 4 months. Cost data are as follows:

Regular-time cost per monitor $ 70

Overtime cost per monitor $110

Subcontract cost per monitor $120

Carrying cost per monitor per month $ 4

For each of the next 4 months, capacity and demand for flatscreen monitors are as follows:

CEO Mohan Roa expects to enter the planning period with 500 monitors in stock. Back ordering is not permitted (meaning, for example, that monitors produced in the second month cannot be used to cover first month's demand). Develop a production plan that minimizes costs using the transportation method.

Transcribed Image Text:

Demand Capacity Overtime Month 1 Month 2 Month 3a | Month 4 Period 2,000 2,500 1,500 Regular time 1,500 1,600 400 400 750 200 Subcontract 600 600 600 2,100 1,600 400 600 Demand Capacity Overtime Month 1 Month 2 Month 3a | Month 4 Period 2,000 2,500 1,500 Regular time 1,500 1,600 400 400 750 200 Subcontract 600 600 600 2,100 1,600 400 600

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