Ram Roy's firm has developed the following supply, demand, cost, and inventory data.Supply AvailableRegularTimeOvertime Subcontract401510301510401510Initial inventory20 units$100$160Regular-time cost per unitOvertime cost per unitSubcontract cost per unitCarrying cost per unit per month$200$4Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ (enter your response as a whole number).Period123DemandForecast405555

We will solve this by using the transportation method and using excel solver.

Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ Period 1 2 3 Supply Available Regular Time Overtime Subcontract 40 15 10 30 15 10 40 15 10 20 units $100 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month $160 $200 $4 (enter your response as a whole number). Demand Forecast 40 55 55

Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ Period 1 2 3 Supply Available Regular Time Overtime Subcontract 40 15 10 30 15 10 40 15 10 20 units $100 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month $160 $200 $4 (enter your response as a whole number). Demand Forecast 40 55 55

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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