Ram Roy's firm has developed the following supply. demand, cost, and inventory data. Allocate production capac-...

 

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Ram Roy's firm has developed the following supply. demand, cost, and inventory data. Allocate production capac- ity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Supply Available REGULAR PERIOD TIME OVERTIME SUBCONTRACT DEMAND FORECAST 1 30 10 5 40 2 35 12 5 50 3 30 10 5 40 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit 20 units $100 $150 $200 $ 4 DEMAND FOR Carrying cost per unit per month TOTAL Unused CAPACITY SUPPLY FROM Period 1 (Mar.) 0 Period 2 (Apr.) Period 3 Capacity AVAILABLE (May) (dummy) (supply) Beginning inventory eRegular time Overtime Subcontract eRegular time x Overtime 2 Subcontract P e Regular time X r d Overtime 3 Subcontract TOTAL DEMAND FLLLFLFe X 0 19 0 0 Ram Roy's firm has developed the following supply. demand, cost, and inventory data. Allocate production capac- ity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Supply Available REGULAR PERIOD TIME OVERTIME SUBCONTRACT DEMAND FORECAST 1 30 10 5 40 2 35 12 5 50 3 30 10 5 40 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit 20 units $100 $150 $200 $ 4 DEMAND FOR Carrying cost per unit per month TOTAL Unused CAPACITY SUPPLY FROM Period 1 (Mar.) 0 Period 2 (Apr.) Period 3 Capacity AVAILABLE (May) (dummy) (supply) Beginning inventory eRegular time Overtime Subcontract eRegular time x Overtime 2 Subcontract P e Regular time X r d Overtime 3 Subcontract TOTAL DEMAND FLLLFLFe X 0 19 0 0