producing 70 units in month 3. All other orders for each month is backlogged, however. We can represent this new production plan: # of Units to # of Units to Produce # of Units to Produce (For Backlogged Keep in Production Inventory MONTH Demand (Regular) Orders) Inventory Cost Cost Total Cost $ 1 50 0 0 0 $ - - $ - $ 2 65 0 50 0 $ 125.00 - $ 125.00 $ 3 100 70 65 70 $ 442.50 140.00 $ 582.50 $ 4 70 0 100 0 $ 250.00 - $ 250.00 GRAND TOTAL COST $ 957.50 The program’s suggestion is as follows: Do not produce anything in Month 1. In Month 2, produce 50 units to meet Month 1’s demand. In Month 3, produce 135 units (65 for Month 2’s backlogged orders and 70 to store in inventory). In Month 4, it suggests to produce 100 units to meet Month 3’s demand. Part C Part C | Problem Statement Solve the same problem in Part B using the Transportation Problem option in WinQSB. _____________________________________________________________________________________ Part C | Assumptions We keep the same assumptions as we did in the previous parts.
producing 70 units in month 3. All other orders for each month is backlogged, however. We can represent this new production plan: MONTH Demand # of Units to Produce (Regular) # of Units to Produce (For Backlogged Orders) # of Units to Keep in Inventory Production Cost Inventory Cost Total Cost 1 50 0 0 0 $ - $ - $ - 2 65 0 50 0 $ 125.00 $ - $ 125.00 3 100 70 65 70 $ 442.50 $ 140.00 $ 582.50 4 70 0 100 0 $ 250.00 $ - $ 250.00 GRAND TOTAL COST $ 957.50 The program’s suggestion is as follows: Do not produce anything in Month 1. In Month 2, produce 50 units to meet Month 1’s demand. In Month 3, produce 135 units (65 for Month 2’s backlogged orders and 70 to store in inventory). In Month 4, it suggests to produce 100 units to meet Month 3’s demand. Part C Part C | Problem Statement Solve the same problem in Part B using the Transportation Problem option in WinQSB. _____________________________________________________________________________________ Part C | Assumptions We keep the same assumptions as we did in the previous parts.