Question: The production planning period for flat screen monitors at Georg

The production planning period for flat-screen monitors at Georgia’s Fernandez 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 flat-screen monitors are as follows:

Fernandez Electronics 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 in the first month to cover first month’s demand). Develop a production plan that minimizes costs using the transportationmethod.

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  • CreatedJuly 23, 2013
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