Ram Roy\'s firm has developed the following supply, demand, cost, and inventory
ID: 465297 • Letter: R
Question
Ram Roy's firm has developed the following supply, demand, cost, and inventory data.
Supply Available
Period---------
RegularTime-------
Overtime-------
Subcontract--------
Demand Forecast
1
30
15
10
50
2
30
15
10
45
3
40
20
10
60
Initial inventory
30 units
Regular-time cost per unit
$100
Overtime cost per unit
$160
Subcontract cost per unit
$250
Carrying cost per unit per month
$6
Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.
A) Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is ??? (enter your response as a whole number)
Supply Available
Period---------
RegularTime-------
Overtime-------
Subcontract--------
Demand Forecast
1
30
15
10
50
2
30
15
10
45
3
40
20
10
60
Explanation / Answer
Total Cost is $26310.
Supply Available Cost Period RegularTime Overtime Subcontract Demand Forecast total supply beginning inventory ending inventory RegularTime cost Overtime cost Subcontract cost Carrying cost Total cost 1 30 15 10 50 55 30 35 3000 2400 2500 210 8110 2 30 15 10 45 55 35 45 3000 2400 2500 270 8170 3 40 20 10 60 70 45 55 4000 3200 2500 330 10030 Total 100 50 30 155 180 110 135 10000 8000 7500 810 26310 Initial inventory 30 units Regular-time cost per unit $100 Overtime cost per unit $160 Subcontract cost per unit $250 Carrying cost per unit per month $6Related Questions
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