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18. Broncs Manufacturers Inc. makes parts for trucks. Demand estimates for one of its products for the next three months, May, June, and July, are 270,430 , and 100 units, respectively. Each month the regular time capacity is 150 units, overtime capacity is 50 , and subcontractor capacity is 50 units. Regular time cost is $20 per unit, while overtime cost is $30 per unit. Backorder cost is $10 per unit per month, inventory holding cost is $5 per unit per month. An aggregate plan that uses regular time, overtime, subcontractor, inventory, and backorders has been formulated as a transportation model and solved on POM for Windows as shown below. a. What is the production plan for the next three months? (i.e., how many units will be produced in regular and overtime production each month, and how many will be supplied by the subcontractor?) What is the total cost? b. How will demand be satisfied each week? (i.e., how many units will be supplied from each source?) Will demand be completely satisfied each month? c. What is the additional cost due to holding? d. What is the additional cost due to backordering? e. What is the additional cost due to overtime? Module/submodel: Transportation Problem title: BRONCS MANUFACTURERS INC. Objective: Minimize Data and Results Original Data Shipments 18. Broncs Manufacturers Inc. makes parts for trucks. Demand estimates for one of its products for the next three months, May, June, and July, are 270,430 , and 100 units, respectively. Each month the regular time capacity is 150 units, overtime capacity is 50 , and subcontractor capacity is 50 units. Regular time cost is $20 per unit, while overtime cost is $30 per unit. Backorder cost is $10 per unit per month, inventory holding cost is $5 per unit per month. An aggregate plan that uses regular time, overtime, subcontractor, inventory, and backorders has been formulated as a transportation model and solved on POM for Windows as shown below. a. What is the production plan for the next three months? (i.e., how many units will be produced in regular and overtime production each month, and how many will be supplied by the subcontractor?) What is the total cost? b. How will demand be satisfied each week? (i.e., how many units will be supplied from each source?) Will demand be completely satisfied each month? c. What is the additional cost due to holding? d. What is the additional cost due to backordering? e. What is the additional cost due to overtime? Module/submodel: Transportation Problem title: BRONCS MANUFACTURERS INC. Objective: Minimize Data and Results Original Data Shipments

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