SUB- CONTRACT FORECAST REGULAR TIME QUARTER (UNITS) OVERTIME 500 400 80 100 750 400 80 100 900 800 160 100 4 450 400 80 100 23

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
Yu Amy Xia bas developed a specialized airtight
vacuum bag to extend the freshness of seafood shipped to restaurants.
She has put together the following demand cost data:                                                                            You decides that the initial inventory of 250 units will incur the
$0.20/unit cost from each prior quarter (unlike the situation in
most other companies, where a 0 unit cost is assigned).
a) Find the optimal pla n using the transportation method.
b) What is the cost of the plan?
c) Does any regula r time capacity go unused? If so, how much in which periods?
b) What is the extent of backordering in units and dollars?         
SUB-
CONTRACT
FORECAST
REGULAR
TIME
QUARTER
(UNITS)
OVERTIME
500
400
80
100
750
400
80
100
900
800
160
100
4
450
400
80
100
23
Transcribed Image Text:SUB- CONTRACT FORECAST REGULAR TIME QUARTER (UNITS) OVERTIME 500 400 80 100 750 400 80 100 900 800 160 100 4 450 400 80 100 23
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