Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shippec restaurants. She has put together the following demand cost data: QUARTER FORECAST (UNITS) REGULAR TIME OVERTIME SUB-CONTRACT 500 400 400 800 400 80 100 100 750 900 450 80 3 160 100 4 80 100 Initial inventory 250 units Regular time cost = Overtime cost - $1.50/unit Subcontracting cost = $2.00/unit Carrying cost $0.20/unit/quarter Back order cost - $0.50/unit/quarter $1.00/unit a. Find the optimal plan using the transportation method. $ I Select ] b. Yu decides that the initial inventory of 250 units will incur the 20¢/unit cost from each prior quarter (u the situation in most other companies, where a 0 unit cost is assigned). What is the true cost of the pl. including the cost of the initial inventory? $ [Select] c. Was back-ordering utilized for question b.? I Select ] 8888
Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shippec restaurants. She has put together the following demand cost data: QUARTER FORECAST (UNITS) REGULAR TIME OVERTIME SUB-CONTRACT 500 400 400 800 400 80 100 100 750 900 450 80 3 160 100 4 80 100 Initial inventory 250 units Regular time cost = Overtime cost - $1.50/unit Subcontracting cost = $2.00/unit Carrying cost $0.20/unit/quarter Back order cost - $0.50/unit/quarter $1.00/unit a. Find the optimal plan using the transportation method. $ I Select ] b. Yu decides that the initial inventory of 250 units will incur the 20¢/unit cost from each prior quarter (u the situation in most other companies, where a 0 unit cost is assigned). What is the true cost of the pl. including the cost of the initial inventory? $ [Select] c. Was back-ordering utilized for question b.? I Select ] 8888
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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Explain answer for all parts of the question
![Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to
restaurants. She has put together the following demand cost data:
QUARTER FORECAST (UNITS) REGULAR TIME OVERTIME SUB-CONTRACT
500
750
400
400
80
100
80
100
100
900
800
160
4
450
400
80
100
Initial inventory = 250 units
Regular time cost - $1.00/unit
Overtime cost - $1.50/unit
Subcontracting cost $2.00/unit
Carrying cost $0.20/unit/quarter
Back order cost = $0.50/unit/quarter
a. Find the optimal plan using the transportation method. $ I Select ]
b. Yu decides that the initial inventory of 250 units will incur the 20¢/unit cost from each prior quarter (unlike
the situation in most other companies, where a O unit cost is assigned). What is the true cost of the plan,
including the cost of the initial inventory? $ I Select]
c. Was back-ordering utilized for question b.? I Select ]
8888](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5c23ef8-a2ef-4c0d-aeca-1664b2c5a595%2Ffb2d42aa-bbff-4919-aca2-88cc18581dc4%2Ffsj49b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to
restaurants. She has put together the following demand cost data:
QUARTER FORECAST (UNITS) REGULAR TIME OVERTIME SUB-CONTRACT
500
750
400
400
80
100
80
100
100
900
800
160
4
450
400
80
100
Initial inventory = 250 units
Regular time cost - $1.00/unit
Overtime cost - $1.50/unit
Subcontracting cost $2.00/unit
Carrying cost $0.20/unit/quarter
Back order cost = $0.50/unit/quarter
a. Find the optimal plan using the transportation method. $ I Select ]
b. Yu decides that the initial inventory of 250 units will incur the 20¢/unit cost from each prior quarter (unlike
the situation in most other companies, where a O unit cost is assigned). What is the true cost of the plan,
including the cost of the initial inventory? $ I Select]
c. Was back-ordering utilized for question b.? I Select ]
8888
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