Question
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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started