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
1 2 3
Demand 550 700 750
Capacity
Regular 500 500 440
Overtime 50 50 50
Subcontract 120 120 100
Beginning inventory 100
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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	PERIOD
	1		2	3
Demand		550	700	750
Capacity
Regular		500	500	440
Overtime		50	50	50
Subcontract		120	120	100
Beginning inventory		100
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