Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Regular Time Demand Forecast Period Overtime Subcontract 40 15 10 40 35 15 10 60 3 30 20 10 50 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month. 20 units $100 $150 $250 S2 Assume that the initial inventory has no holding cost in the first period and backorders are:not permitted. Allocating production capacity to meet demand at a minimum cost using the transportatión method, the total cost is $- (enter your response as a whole number).

Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Regular Time Demand Forecast Period Overtime Subcontract 40 15 10 40 35 15 10 60 3 30 20 10 50 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month. 20 units $100 $150 $250 S2 Assume that the initial inventory has no holding cost in the first period and backorders are:not permitted. Allocating production capacity to meet demand at a minimum cost using the transportatión method, the total cost is $- (enter your response as a whole number).

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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Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.
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