Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. supply available period Regular Tim overtime sub
Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. supply available period Regular Tim overtime sub
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Question
![Ram Roy's firm has developed the following supply,
demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation
method. What is the cost? Assume that the initial inventory has no
holding cost in the first period and backorders are not permitted.
supply available
period
initial inventory
regular-time cost per unit
Overtime cost per unit
subcointract cost per unit
carrying cost per unit per month
1
2
3
Regular Tim overtime subcontrac demand forecast
30
35
30
15
$
LA LA LA L
$
$
$
90.00
110.00
120.00
3.00
15
10
10
5
5
5
50
50
40](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4100da26-36bd-43a6-aafd-ee8e0ffe886a%2F7db3e2b9-9d81-4309-9786-d5b95a780ae4%2F4f00hm5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ram Roy's firm has developed the following supply,
demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation
method. What is the cost? Assume that the initial inventory has no
holding cost in the first period and backorders are not permitted.
supply available
period
initial inventory
regular-time cost per unit
Overtime cost per unit
subcointract cost per unit
carrying cost per unit per month
1
2
3
Regular Tim overtime subcontrac demand forecast
30
35
30
15
$
LA LA LA L
$
$
$
90.00
110.00
120.00
3.00
15
10
10
5
5
5
50
50
40
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