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1. A Dover, Delaware, plant has developed the accompanying supply, demand, cost, and inventory data. The firm has a constant workforce and meets all its
1. A Dover, Delaware, plant has developed the accompanying supply, demand, cost, and inventory data. The firm has a constant workforce and meets all its demand. Allocate production capacity to satisfy demand at a minimum cost. What is the cost of this plan? Supply capacity available PERIOD REGULAR TIME 1 300 2 400 3 450 OVERTIME SUBCONTRACT 50 200 50 200 50 200 Demand forecast PERIOD DEMAND (UNITS) 1 450 2 550 3 750 Other Data Initial inventory 50 units Regular-time cost per unit $50 Overtime cost per unit $65 Subcontract cost per unit $80 Carrying cost per unit per period $1 Back order cost per unit per period $4
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