Question
RamRoy's firm has developed the followingsupply, demand,cost, and inventory data. Supply Available Period Regular Time Overtime Subcontract Demand Forecast 1 30 15 15 50 2
RamRoy's firm has developed the followingsupply, demand,cost, and inventory data.
Supply Available
Period Regular Time Overtime Subcontract Demand Forecast
1 30 15 15 50
2 35 15 15 55
3 30 15 15 45
Initial inventory 30 units
Regular-time cost per unit $100
Overtime cost per unit $160
Subcontract cost per unit $250
Carrying cost per unit per month $6
Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.
Allocating production capacity to meet demand at a minimum cost using the transportationmethod, the total cost is $
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