The question required students to allocate production capacity to meet demand at minimum cost using the transportation method. Thereafter, students had to determine the cost of the plan by assuming the initial inventory has no holding cost in the first period and backorders are not permitted. This discussion was required to be used by the provided information to answer the required questions. The majority of the students had this calculation method incorrect and provided the final answer to be incorrect. This was the correct method of working this answer out: Student response should discuss the following: Cost Plan Period 1: 50 ($0) + 300 ($50) + 50($65) + 50($80) = $22, 250 Period 2: 400 ($50) + 50($65) + 100($80) = $31, 250 Period 3: 50 ($81) + 450 ($50) + 50($65) + 200($80) = $45, 800 Total Cost: $99,300