Business, 06.05.2020 01:33 aleah1616

Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a "showpiece" for display in Mexican restaurants. His forecast of capacity and demand follows:
Month
1 2 3 4 5
Demand Capacity 150 160 140 220 240
Regular time 150 150 150 160 160
Overtime 10 30 10 20 20
Subcontracting: 90 units available over the 5-month period
Beginning inventory: 0 units
Ending inventory required: 10 units
Costs
Regular-time cost per unit $90
Overtime cost per unit $115
Subcontract cost per unit $125
Inventory holding cost per unit per month $3
Assume that backorders are not permitted.
Required:
1. Using the transportation method, the total cost of the optimal plan is $ (enter your response as a whole number).

Answers: 1

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