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Given the following information set up the problem in a transportation table and solve for the minimum-cost plan: PERIOD 1 2 3 Demand 550 700

Given the following information set up the problem in a transportation table and solve for the minimum-cost plan:

PERIOD

123
Demand550700750
Capacity
Regular500500500
Overtime505050
Subcontract120120100
Beginning inventory100
Costs
Regular time$72 per unit
Overtime$78 per unit
Subcontract$99 per unit
Inventory carrying cost$2 per unit per month
Back-order cost$3 per unit per month


Suppose that regular-time capacity will be reduced to 440 units in period 3 to accommodate a company wide safety inspection of equipment. An inventory carrying cost is $4 per unit per period. What will the additional cost of the optimal plan be?

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