Question: 1 Regular Prod. Cost = $23/unit Overtime Prod. Cost = $28/unit Subcont Prod. Cost = $35/unit/qtr Period of Production Beginning Inventory Regular Overtime Subcontract

1 Regular Prod. Cost = $23/unit Overtime Prod. Cost = $28/unit Subcont

1 Regular Prod. Cost = $23/unit Overtime Prod. Cost = $28/unit Subcont Prod. Cost = $35/unit/qtr Period of Production Beginning Inventory Regular Overtime Subcontract Given the following information for a company that wants to use Backorders: Inventory Cost = $8/unit/qtr Backordering Cost = $11/unit/qtr Backorders Permitted Regular 2 Overtime Subcontract 1 Period of Use 2 A Capacity 0 1800 250 2000 1800 250 2000 Demand 2350 1250 Completely fill in the Transportation tableau including the Production Plan. What is the value of A? What is the cost for all units produced during the 2nd quarter? How many units of unused capacity are available after all demand has been met?

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