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A) Completely fill in the Transportation table including the Production Plan.   B) Determine the total cost for all units produced during the 2nd quarter.

A) Completely fill in the Transportation table including the Production Plan.   B) Determine the total cost for all units produced during the 2nd quarter.

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
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A) Completely fill in the Transportation table including the Production Plan.

 

B) Determine the total cost for all units produced during the 2nd quarter.

 

# APP Transportation Problem – Educational Website ## Question 3) APP Transportation Given the following information for a company that **wants to use Backorders**: **Demand per Quarter:** | Quarter | Demand | |---------|--------| | 1 | 8,000 | | 2 | 4,000 | | 3 | 2,000 | **Production and Cost Information:** - **Regular Production Capacity:** 3,000 units per quarter (units/qtr) - **Overtime Production Capacity:** 800 units per quarter (units/qtr) - **Subcontracting Capacity:** 1,800 units per quarter (units/qtr) - **Beginning Inventory:** 500 units - **Regular Production Cost:** $20 per unit - **Overtime Production Cost:** $25 per unit - **Subcontracting Cost:** $35 per unit - **Inventory Cost:** $4 per unit per quarter (unit/qtr) - **Backordering Cost:** $6 per unit per quarter (unit/qtr) **Note: Backorders are permitted.** ## Detailed Breakdown of the Table: **Table Title: Production and Usage Planning** This table intends to help in planning and strategizing how to meet the demands of each quarter considering different production methods and capacities. Despite beginning inventory, the company may need to use a mix of regular production, overtime, and subcontracting to meet its quarterly demands while also considering costs and permissible backorders. The fields need to be filled with relevant quantities to determine the optimal production strategy. | Quarter of Production | Quarter of Use | Capacity | |-----------------------|-----------------------|----------| | | 1 | 2 | 3 | | | **Beginning inventory** | | | | | | **1** | | | | | | Regular | | | | | | Overtime | | | | | | Subcontract | | | | | | **2** | | | | | | Regular | | | | | | Overtime | | | | | | Subcontract | | | | | | **3** | | | | | | Regular | | |
Transcribed Image Text:# APP Transportation Problem – Educational Website ## Question 3) APP Transportation Given the following information for a company that **wants to use Backorders**: **Demand per Quarter:** | Quarter | Demand | |---------|--------| | 1 | 8,000 | | 2 | 4,000 | | 3 | 2,000 | **Production and Cost Information:** - **Regular Production Capacity:** 3,000 units per quarter (units/qtr) - **Overtime Production Capacity:** 800 units per quarter (units/qtr) - **Subcontracting Capacity:** 1,800 units per quarter (units/qtr) - **Beginning Inventory:** 500 units - **Regular Production Cost:** $20 per unit - **Overtime Production Cost:** $25 per unit - **Subcontracting Cost:** $35 per unit - **Inventory Cost:** $4 per unit per quarter (unit/qtr) - **Backordering Cost:** $6 per unit per quarter (unit/qtr) **Note: Backorders are permitted.** ## Detailed Breakdown of the Table: **Table Title: Production and Usage Planning** This table intends to help in planning and strategizing how to meet the demands of each quarter considering different production methods and capacities. Despite beginning inventory, the company may need to use a mix of regular production, overtime, and subcontracting to meet its quarterly demands while also considering costs and permissible backorders. The fields need to be filled with relevant quantities to determine the optimal production strategy. | Quarter of Production | Quarter of Use | Capacity | |-----------------------|-----------------------|----------| | | 1 | 2 | 3 | | | **Beginning inventory** | | | | | | **1** | | | | | | Regular | | | | | | Overtime | | | | | | Subcontract | | | | | | **2** | | | | | | Regular | | | | | | Overtime | | | | | | Subcontract | | | | | | **3** | | | | | | Regular | | |
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