Josie Gaffs firm has developed the following supplydemandcos

Josie Gaff\'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 $ (enter your response as a whole number).

Solution

Period::::::::::::::::::1::::::::::::::::::::::::::::::::::::::2:::::::::::::::::::::::::::::::::::::3::::::::::::::::::::::::::Total

Beginging Inventory::20::::::::::::::::::::::::::::::0::::::::::::::::::::::::::::::::::::::0:::::::::::::::::::::::::::20

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Output:

Regular Time::::30:::::::::::::::::::::::::::::::::::30:::::::::::::::::::::::::::::::::::30:::::::::::::::::::::::::::90

Overtime:::::::::::0::::::::::::::::::::::::::::::::::15:::::::::::::::::::::::::::::::::::20:::::::::::::::::::::::::::35

Subcontract:::::::0::::::::::::::::::::::::::::::::::5:::::::::::::::::::::::::::::::::::::0::::::::::::::::::::::::::::::5

cost =

Regular Time::::30*$100=3000::::::30*$100=3000::::::::30*$100=3000

Overtime:::::::::::0:::::::::::::::::::::::15*$160=2400:::::::::20*$160=3200

Subcontract:::::::::::::::::::::::::::::::::5*250=1250:::::::::::::::::::::0

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total cost = $3,300:::::::::::::::::::::::::::::$6,650::::::::::::::::::$6,200

total cost =$3,300 + $6,650+$6,200=$16,150

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