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Ram Roys firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the

Ram Roys firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation method.

What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Please show allwork/steps

Supply Available

Period

Regular Time

Overtime

Subcontract

Demand Forecast

1

30

10

5

40

2

35

11

5

50

3

30

10

5

40

Initial inventory

20 units

Regular-time cost per unit

$100

Overtime cost per unit

$150

Subcontract cost per unit

$200

Carrying cost per unit per month

$5

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