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.

Supply Available PERIOD REGULAR TIME OVERTIME SUBCONTRACT DEMAND FORECAST 1 30 10 5 40 2 35 12 5 50 3 30 10 5 40 Initial inventory 20 units Regular-time cost per unit $100 Overtime cost per unit $150 Subcontract cost per unit $200 Carrying cost per unit per month $ 4 lop52