Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 13, Problem 18P
Summary Introduction

To determine: The minimum cost using the transportation method.

Introduction: Aggregate planning using transportation method helps to attain minimum cost using the optimal plan. The major advantage of transportation method is to achieve the optimal solution using optimal plans.

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Oliver Munday has developed the following supply, demand, cost and inventory data (provided below). He has requested you to allocate production capacity to meet demand at minimum cost using the transportation method. Determine the cost of the plan. Assuming the initial inventory has no holding cost in the first period and backorders are not permitted. Use the provided information to answer the questions. Initial Inventory 20 units Regular-time cost per unit R100 Overtime cost per unit R150 Subcontract cost per unit R200 Carrying cost per unit R4 Period Regular Time Overtime Sub-contract Demand Forecast 1 30 10 5 40 2 35 12 5 50 3 30 10 5 40
9) APP Transportation Summary Table Given the following summary table from a Transportation Method Production Plan: What is the value of X (inventory at the end of the 3rd quarter)? Group of answer choices a) 8,100 b) 7,300 c) 1,900 d) 15,400 e) 0
Ram Roy's firm has developed the following supply,demand, cost, and inven tory data. Allocate production capacityto meet demand at a minimum cost using the transportationmethod. What is the cost? Assume that the initial inven tory has noholding cost in the fi rst period and backorders are not permitted.
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