Given the following information set up the problem in a transportation table and solve for the minimum-cost
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Question:
Given the following information set up the problem in a transportation table and solve for the minimum-cost plan:
PERIOD | ||||
1 | 2 | 3 | ||
Demand | 550 | 700 | 750 | |
Capacity | ||||
Regular | 500 | 500 | 500 | |
Overtime | 50 | 50 | 50 | |
Subcontract | 120 | 120 | 100 | |
Beginning inventory | 100 | |||
Costs | ||||
Regular time | $ | 72 per unit | ||
Overtime | $ | 78 per unit | ||
Subcontract | $ | 99 per unit | ||
Inventory carrying cost | $ | 2 per unit per month | ||
Back-order cost | $ | 3 per unit per month | ||
Suppose that regular-time capacity will be reduced to 440 units in period 3 to accommodate a company wide safety inspection of equipment. An inventory carrying cost is $4 per unit per period. What will the additional cost of the optimal plan be?
Related Book For
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
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