Question: Given the following information set up the problem in a transportation table and solve for the minimum-cost plan. Solve by modifying textbook Table 11.6. Suppose
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Suppose that regular-time capacity will be reduced to 440 units in period 3 to accommodate a companywide safety inspection of equipment. What will the additional cost of the optimal plan be?
PERIOD 2 3 700 750 Demand 550 Capacity 500 Regular 500 500 Overtime 50 50 50 Subcontract 120 120 100 Beginning inventory 100 Costs $ 60 per unit S 80 per unit $ 90 per unit Regular time Overtime Subcontract S 1 per unit per month S 3 per unit per month Inventory carrying cost Back-order cost
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1 2 3 Total Demand 550 700 750 2000 Regular Production Units 500 500 500 1500 Over time Production U... View full answer
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