Ram Roy\'s firm has developed the following supply, demand, cost, and inventory
ID: 464815 • Letter: R
Question
Ram Roy's firm has developed the following supply, demand, cost, and inventory data.
Supply Available
Period---------
RegularTime-------
Overtime-------
Subcontract--------
Demand Forecast
1
30
15
15
40
2
30
15
15
50
3
30
15
15
45
Initial inventory
20 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.
A) Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is ??? (enter your response as a whole number)
Supply Available
Period---------
RegularTime-------
Overtime-------
Subcontract--------
Demand Forecast
1
30
15
15
40
2
30
15
15
50
3
30
15
15
45
Explanation / Answer
Minimum cost using the transportation method
Source:::::::::::::::::::RegularTime::::::::::::::Overtime:::::::::::::::::::Subcontract:::::::::::::::Demand
1::::::::::::::::::::::::::::::::::::::30::::::::::::::::::::::::::::15::::::::::::::::::::::::::::::::15::::::::::::::::::::::::::::::::40
2::::::::::::::::::::::::::::::::::::::30::::::::::::::::::::::::::::15::::::::::::::::::::::::::::::::15::::::::::::::::::::::::::::::::50
3::::::::::::::::::::::::::::::::::::::30::::::::::::::::::::::::::::15::::::::::::::::::::::::::::::::15::::::::::::::::::::::::::::::::45
Scheduled for allocating demand
Source:::::::::::::::::::RegularTime::::::::::::::Overtime:::::::::::::::::::Subcontract:::::::::::::::Demand
1::::::::::::::::::::::::::::::::::::::30::::::::::::::::::::::::::::10::::::::::::::::::::::::::::::::NIL::::::::::::::::::::::::::::::::40
2::::::::::::::::::::::::::::::::::::::30::::::::::::::::::::::::::::15:::::::::::::::::::::::::::::::::5::::;::::::::::::::::::::::::::::::50
3::::::::::::::::::::::::::::::::::::::30::::::::::::::::::::::::::::15:::::::::::::::::::::::::::::::::NIL:::::::::::::::::::::::::::::::45
________________________________________________________________________________
Allocating the minimum cost
Source:::::::::::::::::::RegularTime::::::::::::::Overtime:::::::::::::::::::Subcontract:::::::::::::::Demand
1::::::::::::::::::::::::::::::::::::30*$100:::::::::::::::::::::10*$160::::::::::::::::::::::::::NIL:::::::::::::::::::::::::::::::::40
2::::::::::::::::::::::::::::::::::::30*$100:::::::::::::::::::::15*$160::::::::::::::::::::::5*$250::::::::::::::::::::::::::::::::50
3:::::::::::::::::::::::::::::::::::30*$100::::::::::::::::::::::15*$160:::::::::::::::::::::::::NIL:::::::::::::::::::::::::::::::::::45
minimum cost
30*$100=$3,000
10*$160=$1600
30*$100=$3,000
15*$160=$2,400
5*$250=$1,250
30*$100=$3,000
15*$160=$2,400
________________
Total cost =$16,650
________________
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