Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Period Regular Time Overtime Subcontract Demand Forecast 1 30 15 5 40 2 30 15 5 45 3 30 20 5 50 Initial inventory 20 units Regular-time cost per unit $100 Overtime cost per unit $160 Subcontract cost per unit $200 Carrying cost per unit per month $4 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Part 2 Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $enter your response here
Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Period Regular Time Overtime Subcontract Demand Forecast 1 30 15 5 40 2 30 15 5 45 3 30 20 5 50 Initial inventory 20 units Regular-time cost per unit $100 Overtime cost per unit $160 Subcontract cost per unit $200 Carrying cost per unit per month $4 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Part 2 Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $enter your response here
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
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Ram Roy's firm has developed the following supply, demand, cost, and inventory data.
Supply Available
|
||||
Period
|
Regular Time
|
Overtime
|
Subcontract
|
Demand
|
1
|
30
|
15
|
5
|
40
|
2
|
30
|
15
|
5
|
45
|
3
|
30
|
20
|
5
|
50
|
Initial inventory
|
20
units |
Regular-time cost per unit
|
$100
|
Overtime cost per unit
|
$160
|
Subcontract cost per unit
|
$200
|
Carrying cost per unit per month
|
$4
|
Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.
Part 2
Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is
$enter your response here
(enter your response as a whole number).Expert Solution
Step 1
A Small Introduction about Inventory Management
- Inventory management alludes to the method involved with requesting, putting away, utilizing, and selling an organization's inventory.
- This incorporates the management of unrefined substances, parts, and completed items, as well as the warehousing and handling of such things.
- Inventory management is essential to independent companies since it assists them with forestalling stockouts, dealing with different areas, and guaranteeing precise recordkeeping.
- An inventory arrangement makes these cycles simpler than attempting to do them all physically.
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