SUPPLY CAPACITY (IN UNITS) REGULAR DEMAND PERIOD TIME OVERTIME SUBCONTRACT (IN UNITS) 1 25 32 2 28 4 32 3 30 8 40 4 29 6 40 OTHER DATA Initial inventory Ending inventory desired Regular-time cost per unit Overtime cost per unit Subcontracting cost per unit Carrying cost per unit per period Backorder cost per unit per period 4 units 3 units $2,000 $2,475 $3,200 $200 $600 67

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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The James Lawson C hemical Supply Company
ma nufactures and packages expensive vials of mercury. Given
the following demand, supply, cost, and inventory data, allocate
production capacity to meet demand at minimum cost using
the transportation method. A constant workforce is expected.
Backorders are permitted.
SUPPLY CAPACITY (IN UNITS)
REGULAR
DEMAND
PERIOD
TIME
OVERTIME SUBCONTRACT (IN UNITS)
1
25
32
2
28
4
32
3
30
8
40
4
29
6
40
OTHER DATA
Initial inventory
Ending inventory desired
Regular-time cost per unit
Overtime cost per unit
Subcontracting cost per unit
Carrying cost per unit per period
Backorder cost per unit per period
4 units
3 units
$2,000
$2,475
$3,200
$200
$600
67
Transcribed Image Text:SUPPLY CAPACITY (IN UNITS) REGULAR DEMAND PERIOD TIME OVERTIME SUBCONTRACT (IN UNITS) 1 25 32 2 28 4 32 3 30 8 40 4 29 6 40 OTHER DATA Initial inventory Ending inventory desired Regular-time cost per unit Overtime cost per unit Subcontracting cost per unit Carrying cost per unit per period Backorder cost per unit per period 4 units 3 units $2,000 $2,475 $3,200 $200 $600 67
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