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

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 500 500 440
Overtime 50 50 50
Subcontract 120 120 100
Beginning inventory 100
Costs
Regular time $ 60 per unit
Overtime $ 80 per unit
Subcontract $ 90 per unit
Inventory carrying cost $ 1 per unit per month
Back-order cost $ 3 per unit per month

Suppose the inventory carrying cost has just increased and is now $2 per unit per period. Compute the total cost for the original transportation model with $1 inventory carrying cost, and the new total cost at $2 carrying cost. What is the additional cost for the optimal plan?

Additional Cost =

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