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Operations Management
MONTH 1 2 3 4 Demand 150 160 130 200 210 Сарacity Regular 150 150 150 150 150 Overtime 20 20 10 10 10 Subcontracting: 100 units available over the 5-month period Beginning inventory: 0 units Ending inventory required: 20 units COSTS Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Inventory holding cost per unit per month $100 $125 $135 $ 3

MONTH 1 2 3 4 Demand 150 160 130 200 210 Сарacity Regular 150 150 150 150 150 Overtime 20 20 10 10 10 Subcontracting: 100 units available over the 5-month period Beginning inventory: 0 units Ending inventory required: 20 units COSTS Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Inventory holding cost per unit per month $100 $125 $135 $ 3

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
Jose Martinez of El Paso has developed a polished
stainless steel tortilla machine that makes it a "showpiece" for
display in Mexican restaurants. He needs to develop a 5-month
aggregate plan. His forecast of capacity and demand follows:                                                                    Assume that backorders a re not permitted. Using the transportation
method, what is the total cost of the optimal plan?
MONTH 1 2 3 4 Demand 150 160 130 200 210 Сарacity Regular 150 150 150 150 150 Overtime 20 20 10 10 10 Subcontracting: 100 units available over the 5-month period Beginning inventory: 0 units Ending inventory required: 20 units COSTS Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Inventory holding cost per unit per month $100 $125 $135 $ 3
Transcribed Image Text:MONTH 1 2 3 4 Demand 150 160 130 200 210 Сарacity Regular 150 150 150 150 150 Overtime 20 20 10 10 10 Subcontracting: 100 units available over the 5-month period Beginning inventory: 0 units Ending inventory required: 20 units COSTS Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Inventory holding cost per unit per month $100 $125 $135 $ 3
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