Problem 11-14 solution

Problem 11-14

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: (Omit the "$" sign in your response.)

PERIOD

 123

  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  

  Minimum total cost$  

Problem 11-19

Prepare a master production schedule for industrial pumps in the manner of the following table. Use the MPS rule to "schedule production when the projected on-hand inventory would be less than 10 without production." Suppose that a production lot size of 70 pumps is used. (Leave no cells blank - be certain to enter "0" wherever required.)

June

July

  64         1           2           3         4          5         6         7           8

  Forecast30    30    30    30     40    40    40    40    

  Customer orders (committed)33    20    10    4     2       

  Projected on-hand inventory                               

  MPS                               

  ATP