Problem
Refer to Example 3 in the textbook. Given the following information set up the problem in a transportation table and solve for the minimum-cost plan. Solve by modifying textbook Table 11.6.
|
PERIOD
|
|
1 |
2 |
3 |
| Demand |
|
550 |
700 |
750 |
| Capacity |
|
|
|
|
| Regular |
|
500 |
500 |
500 |
| Overtime |
|
50 |
50 |
50 |
| Subcontract |
|
120 |
120 |
100 |
| Beginning inventory |
|
100 |
|
|
| Costs |
|
|
|
|
| Regular time |
$ |
60 per unit |
| Overtime |
$ |
80 per unit |
| Subcontract |
$ |
90 per unit |
| Inventory carrying cost |
$ |
1 per unit per month |
| Back-order cost |
$ |
3 per unit per month |
Suppose that regular-time capacity will be reduced to 440 units in period 3 to accommodate a companywide safety inspection of equipment.
What will the additional cost of the optimal plan be?
(Omit the "tiny_mce_markerquot; sign in your response.)
Additional cost $