What will the additional cost of the optimal plan be

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Reference no: EM131920519

Problem

Refer to Example 3 in the textbook. Given the following information set up the problem in a transportation table and solve for the minimum-cost plan. Solve by modifying textbook Table 11.6.

PERIOD
	1		2	3
Demand		550	700	750
Capacity
Regular		500	500	500
Overtime		50	50	50
Subcontract		120	120	100
Beginning inventory		100
Costs
Regular time	$	60 per unit
Overtime	$	80 per unit
Subcontract	$	90 per unit
Inventory carrying cost	$	1 per unit per month
Back-order cost	$	3 per unit per month

Suppose that regular-time capacity will be reduced to 440 units in period 3 to accommodate a companywide safety inspection of equipment.

What will the additional cost of the optimal plan be?

(Omit the "tiny_mce_markerquot; sign in your response.)

Additional cost $

Reference no: EM131920519

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