The forecasted demand, production and subcontracting capacities, and costs for the next four quarters are as follows:
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The forecasted demand, production and subcontracting capacities, and costs for the next four quarters are as follows:
There is an initial inventory of 20 units, and it costs $5 per quarter to hold one unit in inventory. Customers will be backordered, but there is a loss-of-goodwill cost of $25 per unit per quarter.
(a) Using the transportation tableau method of developing a production plan, apply the following rules to obtain two feasible solutions.
1)North-west corner rule.
2)Least Unit Cost rule.
(b) Which of these plans do you suggest?
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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