Question: This question earns extra credit up to 8pts. The problem requires using the transportation method of linear programming. The production planning period for flat-screen monitors
This question earns extra credit up to 8pts. The problem requires using the transportation method of linear programming. The production planning period for flat-screen monitors at Louisiana's Rao Electronics, Inc., is 4 months. Cost data are as follows:
| Regular-time cost per monitor | $70 |
| Overtime cost per monitor | $110 |
| Subcontract cost per monitor | $120 |
| Carrying cost per monitor per month | $4 |
For each of the next 4 months, capacity and demand for flat-screen monitors are as follows:
| Period | ||||
| Month 1 | Month 2 | Month 3a | Month 4 | |
| Demand | 2,000 | 2,700 | 1,500 | 2,200 |
| Capacity | ||||
| Regular time | 1,600 | 1,600 | 750 | 1,600 |
| Overtime | 500 | 500 | 200 | 500 |
| Subcontract | 700 | 600 | 700 | 600 |
| aFactory closes for 2 weeks of vacation. | ||||
CEO Mohan Rao expects to enter the planning period with
400
monitors in stock. Backordering is not permitted (meaning, for example, that monitors produced in the second month cannot be used in the first month to cover first month's demand).
Minimizing total cost using the transportation method, the total cost is
$enter your response here
(enter your response as a whole number).
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