University Press publishes textbooks for the university market. The demand for university textbooks is high during the

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University Press publishes textbooks for the university market. The demand for university textbooks is high during the beginning of each semester and then tapers off during the semester. The unavailability of books can cause a professor to switch adoptions, but the cost of storing books and their rapid obsolescence must also be considered. Given the demand and cost factors shown here, use the transportation method to design an aggregate production plan for University Press that will economically meet demand. What is the cost of the production plan?

Months Demand Forecast

February-April ....................................................... 5000

May-July ............................................................... 10,000

August-October .................................................... 30,000

November-January .............................................. 25,000

Regular capacity per quarter ...................................................................... 10,000 books
Overtime capacity per quarter .................................................................... 5000 books
Subcontracting capacity per qtr ..................................................................10,000 books
Regular production rate .............................................................................. $20 per book
Overtime wage rate .................................................................................... $30 per book
Subcontracting cost .................................................................................... $35 per book
Holding cost ................................................................................................ $2.00 per book

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Question Posted: Jul 28, 2018 10:51 AM

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University Press publishes textbooks for the university market. The demand for university textbooks is high during the

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There are multiple optimal solutions to this problem Period ...View the full answer

Operations Management Creating Value Along the Supply Chain

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