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13.25 The James Lawson Chemical Supply Company manufactures and packages expensive vials of mercury. lGiven the following demand= supply, cost, and inventory data= allocate production
13.25 The James Lawson Chemical Supply Company manufactures and packages expensive vials of mercury. lGiven 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. Back orders are permitted. Supply Capacity Sin Units! Period Regular Time Dverme Subcontract Demand [in units] 1 25 5 32 2 23 4 32 3 30 3 6 4D 4 29 I5 2 40 Other Data Initial inventory 4 units Ending inventory desired 3 units Regulartime cost per unit $2.1}0' Overtime cost per unit $2.425 Subcontract cost per unit $3.204} Carrying cost per unit per period $200 Backorder cost per unit per period $601}
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