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Given the following information for a company that wants to use Backorders: Regular Prod. Cost = $23/unit Overtime Prod. Cost = $28/unit $8/unit/qtr Backordering
Given the following information for a company that wants to use Backorders: Regular Prod. Cost = $23/unit Overtime Prod. Cost = $28/unit $8/unit/qtr Backordering Cost= $11/unit/qtr Inventory Cost Subcont Prod. Cost = $35/unit/qtr Backorders Permitted Period of Use Period of Production 1 2 Capacity Beginning 0 Inventory Regular 1800 1 Overtime 250 Subcontract Regular 2 Overtime 2000 1800 Subcontract 250 A 2000 1250 Demand 2350 Completely fill in the Transportation tableau including the Production Plan. 1. What is the value of A? a. $43 b. $35 c. $46 d. $11 c. $22 f. $54 2. What is the cost for all units produced during the 2nd quarter? a. $42,500 b. $0 c. $34,210 d. $38,950 c. $29,000 3. How many units of unused capacity are available after all demand has been met? a. 4100 b. 4500 c. 3200 d. 0 e. 1200
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