The James Lawson Chemical Supply Company manufactures and packages expensive vials of mercury. Given the following demand, supply, cost, and inventory data, allocate production capacity to meet demand at minimum cost using the transportation method. A constant workforce is expected. Backorders are permitted.

Transcribed Image Text:

PERIOD 1 2 234 REGULAR TIME 25 28 SUPPLY CAPACITY (IN UNITS) 30 29 OVERTIME SUBCONTRACT 5 6 4 6 8 6 6 OTHER DATA Initial inventory Ending inventory desired Regular-time cost per unit Overtime cost per unit Subcontracting cost per unit Carrying cost per unit per period Backorder cost per unit per period 7 DEMAND (IN UNITS) 4 units 3 units $2,000 $2,475 $3,200 $200 $600 32 32 40 40