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Given the following information set up the problem in a transportation table and solve for the...

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General Management

Given the following information set up the problem in atransportation table and solve for the minimum-cost plan:

PERIOD
123
Demand550700750
Capacity
Regular500500440
Overtime505050
Subcontract120120100
Beginning inventory100
Costs
Regular time$60 per unit
Overtime$80 per unit
Subcontract$90 per unit
Inventory carrying cost$1 per unit permonth
Back-order cost$3 per unit permonth


Suppose that an inventory carrying cost is increased $2 per unitper period. What will the additional cost of the optimal plan be?(Omit the "$" sign in your response.)

Additional cost          $

I've asked this question a couple of times and it has beenincorrect. So.. the answer is not 440 haha.. good luck! Thanks foryour help!

Answer & Explanation Solved by verified expert
4.2 Ratings (535 Votes)
The transportation model for aggregate plan is as followsthe net demand in month 1 550 100 inventory 450unitsThe optimal Solution is as followsIn month    See Answer
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