Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity 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. Initial Inventory 20 Units Regular Time cost per unit $100 Overtime cost per unit $160 Sub contract cost per unit $250 Carrying cost per unit per month $6 Supply Table Period Regular Time Overtime Subcontract Demand Forecast 1 30 15 5 40 2 30 15 5 45 3 40 15 5 55
Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity 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. Initial Inventory 20 Units Regular Time cost per unit $100 Overtime cost per unit $160 Sub contract cost per unit $250 Carrying cost per unit per month $6 Supply Table Period Regular Time Overtime Subcontract Demand Forecast 1 30 15 5 40 2 30 15 5 45 3 40 15 5 55
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity 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.
Initial Inventory 20 Units
Regular Time cost per unit $100
Overtime cost per unit $160
Sub contract cost per unit $250
Carrying cost per unit per month $6
Supply Table
| Period | Regular Time | Overtime | Subcontract |
Demand |
| 1 | 30 | 15 | 5 | 40 |
| 2 | 30 | 15 | 5 | 45 |
| 3 | 40 | 15 | 5 | 55 |
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