Period 1 2 3 Regular Time 40 30 30 Supply Available Overtime 15 15 20 Subcontract 10 10 10 20 units $100 $160 $200 $6 Demand. Forecast 40 55 50 5 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month Assuming the initial inventory has no holding cost in the first period and that backorders are not permitted. Allocating capacity to meet the demand at a minimum cost using the transportation method, the total cost for the plan is = $(enter your response as a whole number).
Period 1 2 3 Regular Time 40 30 30 Supply Available Overtime 15 15 20 Subcontract 10 10 10 20 units $100 $160 $200 $6 Demand. Forecast 40 55 50 5 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month Assuming the initial inventory has no holding cost in the first period and that backorders are not permitted. Allocating capacity to meet the demand at a minimum cost using the transportation method, the total cost for the plan is = $(enter your response as a whole number).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:General Motors Corporation in their Detroit plant, makes industrial strength eight-cylinder engines that are
used in their heavy duty automobiles Operations manager at Detroit plant has developed the following
supply, demand, cost, and inventory data for future planning purposes.
Supply Available
Regular
Time
Demand
Forecast
Period
Overtime
Subcontract
1
40
15
10
40
2
30
15
10
55
3
30
20
10
50
20 units
$100
Initial inventory
Regular-time cost per unit
Overtime cost per unit
Subcontract cost per unit
$160
$200
Carrying cost per unit per month
$6
Assuming the initial inventory has no holding cost in the first period and that backorders are not permitted.

Transcribed Image Text:supply, demand, cost, and inventory data for future planning purposes.
Supply Available
Regular
Time
Demand
Forecast
Period
Overtime
Subcontract
1
40
15
10
40
2
30
15
10
55
30
20
10
50
20 units
Initial inventory
Regular-time cost per unit
$100
$160
Overtime cost per unit
Subcontract cost per unit
$200
Carrying cost per unit per month
$6
Assuming the initial inventory has no holding cost in the first period and that backorders are not permitted.
Allocating capacity to meet the demand at a minimum cost using the transportation method, the total cost for
the plan is = $ (enter your response as a whole number)
WN
3
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