The production planning period for flat-screen monitors at Louisiana's Rao Electronics, Inc., is 4 months. Cost data are as follows: Regular-time cost per monitor Overtime cost per monitor Subcontract cost per monitor $60 $110 $150 $4 Carrying cost per monitor per month For each of the next 4 months, capacity and demand for flat-screen monitors are as follows: Period Month 3 Month 1 2,000 Month 2 2,500 Month 4 2,200 1,300 Demand Capacity Regular time 1,600 1,600 650 1.600 400 400 100 500 Overtime Subcontract 700 600 700 600 *Factory closes for 2 weeks of vacation. CEO Mohan Rao expects to enter the planning period with 400 monitors in stock. Backordering is not permitted (meaning, for example, that monitors produced in them cover first month's demand).
The production planning period for flat-screen monitors at Louisiana's Rao Electronics, Inc., is 4 months. Cost data are as follows: Regular-time cost per monitor Overtime cost per monitor Subcontract cost per monitor $60 $110 $150 $4 Carrying cost per monitor per month For each of the next 4 months, capacity and demand for flat-screen monitors are as follows: Period Month 3 Month 1 2,000 Month 2 2,500 Month 4 2,200 1,300 Demand Capacity Regular time 1,600 1,600 650 1.600 400 400 100 500 Overtime Subcontract 700 600 700 600 *Factory closes for 2 weeks of vacation. CEO Mohan Rao expects to enter the planning period with 400 monitors in stock. Backordering is not permitted (meaning, for example, that monitors produced in them cover first month's demand).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
Related questions
Question
please answer within 30 minutes.
![The production planning period for flat-screen monitors at Louisiana's Rao Electronics, Inc., is 4 months. Cost data are as follows:
$60
$110
Regular-time cost per monitor
Overtime cost per monitor
Subcontract cost per monitor
Carrying cost per monitor per month
$150
$4
For each of the next 4 months, capacity and demand for flat-screen monitors are as follows:
Period
Month 1
2,000
Month 2
2,500
Month 3
1,300
Month 4
2,200
Demand
Capacity
Regular time
1.600
1,600
650
1,600
Overtime
400
400
100
500
Subcontract
700
600
700
600
Factory closes for 2 weeks of vacation.
CEO Mohan Rao expects to enter the planning period with 400 monitors in stock. Backordering is not permitted (meaning, for example, that monitors produced in the second month cannot be used in the first month to
cover first month's demand)..
Minimizing total cost using the transportation method, the total cost is $ (enter your response as a whole number).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd718f2f5-2241-4254-9cc1-fbd4447017bf%2Faddfa2c1-6d1d-4b35-ae7a-f22a8149086a%2Fzmq0ug_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The production planning period for flat-screen monitors at Louisiana's Rao Electronics, Inc., is 4 months. Cost data are as follows:
$60
$110
Regular-time cost per monitor
Overtime cost per monitor
Subcontract cost per monitor
Carrying cost per monitor per month
$150
$4
For each of the next 4 months, capacity and demand for flat-screen monitors are as follows:
Period
Month 1
2,000
Month 2
2,500
Month 3
1,300
Month 4
2,200
Demand
Capacity
Regular time
1.600
1,600
650
1,600
Overtime
400
400
100
500
Subcontract
700
600
700
600
Factory closes for 2 weeks of vacation.
CEO Mohan Rao expects to enter the planning period with 400 monitors in stock. Backordering is not permitted (meaning, for example, that monitors produced in the second month cannot be used in the first month to
cover first month's demand)..
Minimizing total cost using the transportation method, the total cost is $ (enter your response as a whole number).
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 7 steps with 6 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
![Purchasing and Supply Chain Management](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
![Purchasing and Supply Chain Management](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning