Question
Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it ashowpiece for display in Mexican restaurants. His forecast of
Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a"showpiece" for display in Mexican restaurants. His forecast of capacity and demandfollows:
Month................1..................2...............3..................4...................5Demand............150160...........130.............230...............220
Regular.time....150............150.......150................160.............150
Overtime...........10..............30..........20.................10................20
Subcontracting: 90 units available over the5-month period.
Beginninginventory: 0 units
Ending inventoryrequired: 20 units
Costs
Regular-time cost per unit $90
Overtime cost per unit $115
Subcontract cost per unit $125
Inventory holding cost per unit per month $3
Assume that backorders are not permitted.
Using the transportationmethod, the total cost of the optimal plan is $
nothing
(enter your response as a wholenumber).
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