Ram Roy S Firm Developed Following Supply Demand Cost Inventory Data Supply Available Peri Q34194646

Ram​ Roy’s firm has developed the following​ supply, demand,​cost, and inventory data.

                                                                                                    

Supply Available

Period

Regular Time

Overtime

Subcontract

Demand Forecast

1

30

15

15

50

2

35

15

15

55

3

30

15

15

45

Initial inventory

30

units

​Regular-time cost per unit

​$100

Overtime cost per unit

​$150

Subcontract cost per unit

​$200

Carrying cost per unit per month

​$4

Assume that the initial inventory has no holding cost in thefirst period and backorders are not permitted.

Allocating production capacity to meet demand at a minimum costusing the transportation​ method, the total cost is

​$_____

​(enter your response as awhole​ number).

Expert Answer

Use the following transportation formulation in Excel to findthe optimal solution.