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REGULAR TIME DEMAND FORECAST PERIOD OVERTIME SUBCONTRACT 30 10 5 m 40 35 12 5 50 3 30 10 40 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month 20 units $100 $150 $200 $ 4

REGULAR TIME DEMAND FORECAST PERIOD OVERTIME SUBCONTRACT 30 10 5 m 40 35 12 5 50 3 30 10 40 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month 20 units $100 $150 $200 $ 4

Practical Management Science
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
Ram Roy's firm has developed the following supply,
demand, cost, and inven tory data. Allocate production capacity
to meet demand at a minimum cost using the transportation
method. What is the cost? Assume that the initial inven tory has no
holding cost in the fi rst period and backorders are not permitted.                                                                   
REGULAR TIME DEMAND FORECAST PERIOD OVERTIME SUBCONTRACT 30 10 5 m 40 35 12 5 50 3 30 10 40
Transcribed Image Text:REGULAR TIME DEMAND FORECAST PERIOD OVERTIME SUBCONTRACT 30 10 5 m 40 35 12 5 50 3 30 10 40
Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month 20 units $100 $150 $200 $ 4
Transcribed Image Text:Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month 20 units $100 $150 $200 $ 4
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