Ram Roy\'s firm has developed the following supply, demand, cost, and inventory
ID: 326576 • Letter: R
Question
Ram Roy's firm has developed the following supply, demand, cost, and inventory data Supply Available Regular Time 40 35 40 Demand Period Overtime Subcontract Forecast 15 15 20 40 65 60 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month 20 units $100 $150 $200 $2 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $(ontor your response as a whole number)Explanation / Answer
Total cost for period 1 = 40 x $ 100 ( $ 4000)
Total cost for period 2 = 35 x $ 100 + 20 * $ 2 ( Initial inventory) + 10 x $ 150 ( $ 5040)
Total cost for period 3 = 40 x $ 100 + 20 x $ 150 ( $ 7000)
Total transportation cost = $ 4000 + $ 5040 + $ 7000
Total transportation cost = $ 16,040
Supply Available Period Regular time Over time Sub contract Demand forecast Totalcost 1 40 15 5 40(40 Reg) 4000 2 35 15 5 65(35 Reg) (20 In)(10 OT) 5040 3 40 20 5 60(40 Reg) ( 20 OT) 7000Related Questions
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