Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to restaurants. She has put together the following demand cost data:

Yu decides that the initial inventory of 250 units will incur the $0.20/unit cost from each prior quarter (unlike the situation in most other companies, where a 0 unit cost is assigned).
a) Find the optimal plan using the transportation method.
b) What is the cost of the plan?
c) Does any regular time capacity go unused? If so, how much in which periods?
d) What is the extent of backordering in units and dollars?

Transcribed Image Text:

FORECAST QUARTER (UNITS) 1 500 750 900 450 AWN 2 3 4 REGULAR TIME 400 400 800 400 OVERTIME 80 80 160 80 SUB- CONTRACT 100 100 100 100