Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capac-ity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has noholding cost in the first period and backorders are not permitted.Supply AvailablePERIODREGULARTIME OVERTIME SUBCONTRACT DEMANDFORECAST1 30 10 5 402 35 12 5 503 30 10 5 40Initial inventory 20 unitsRegular-time cost per unit $100Overtime cost per unit $150Subcontract cost per unit $200Carrying cost per unit per month $ 4

Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capac-ity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has noholding cost in the first period and backorders are not permitted.Supply AvailablePERIODREGULARTIME OVERTIME SUBCONTRACT DEMANDFORECAST1 30 10 5 402 35 12 5 503 30 10 5 40Initial inventory 20 unitsRegular-time cost per unit $100Overtime cost per unit $150Subcontract cost per unit $200Carrying cost per unit per month $ 4

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Description: Ram Roy’s firm has developed the following supply,demand, cost, and inventory data. Allocate production capac-ity to meet demand at a minimum cost using the transportationmethod. What is the cost? Assume that the initial inventory has noholding cost

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section: Chapter Questions

Problem 68P

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