Q3 (25 pts): Given the accompanying supply, demand, cost, and inventory data (given in the following...
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Q3 (25 pts): Given the accompanying supply, demand, cost, and inventory data (given in the following tables) for a firm that has a constant work force and wishes to meet all demand (that is, with no back orders), allocate production capacity to satisfy demand at minimum cost. Supply capacity (units) Period Regular time Overtime Subcontract Demand and inventory (100/unit) (125/unit) (130/unit) Demand: 1 60 18 1000 Period 1 2 3 4 2 50 15 1000 Units 100 50 70 80 3 60 18 1000 Initial 20, Final - 25 Carrying cost 2 per 4 65 20 1000 *50 per cent of cost is labour. Q3 (25 pts): Given the accompanying supply, demand, cost, and inventory data (given in the following tables) for a firm that has a constant work force and wishes to meet all demand (that is, with no back orders), allocate production capacity to satisfy demand at minimum cost. Supply capacity (units) Period Regular time Overtime Subcontract Demand and inventory (100/unit) (125/unit) (130/unit) Demand: 1 60 18 1000 Period 1 2 3 4 2 50 15 1000 Units 100 50 70 80 3 60 18 1000 Initial 20, Final - 25 Carrying cost 2 per 4 65 20 1000 *50 per cent of cost is labour.
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