Question: iven the following information set up the problem in a transportation table and solve for the minimum-cost plan. Solve by modifying textbook Table 11.6. PERIOD
iven the following information set up the problem in a transportation table and solve for the minimum-cost plan. Solve by modifying textbook Table 11.6.
| 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 | $ | 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 that regular-time capacity will be reduced to 440 units in period 3 to accommodate a companywide safety inspection of equipment. What will the additional cost of the optimal plan be?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
