Mabry Company: Transportation Method -- Backorders Permitted Period of Production Beginning Inventory Regular 1 Overtime 1 Period of Use 2 100 16 1000 200 Capacity Regular Prod. Cost = $7/unit Overtime Prod. Cost = $11/unit Subcontracting Cost = $15/unit Inventory Cost = $3/unit/qtr Backordering Cost Backorders Permitted = $6/unit/qtr

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Mabry Company: Transportation Method -- Backorders Permitted
Period of Use
2
Regular Prod. Cost = $7/unit
Overtime Prod. Cost = $11/unit
Subcontracting Cost = $15/unit
Inventory Cost = $3/unit/qtr
Backordering Cost = $6/unit/qtr
Backorders Permitted
Period of Production
Beginning
Inventory
Regular
2
Overtime
Subcontract
Regular
0
Overtime
Subcontract
What is the value of A?
O11
14
17
Demand
22
A
2700
B
200
Capacity
100
1000
200
300
1000
200
300
Transcribed Image Text:Mabry Company: Transportation Method -- Backorders Permitted Period of Use 2 Regular Prod. Cost = $7/unit Overtime Prod. Cost = $11/unit Subcontracting Cost = $15/unit Inventory Cost = $3/unit/qtr Backordering Cost = $6/unit/qtr Backorders Permitted Period of Production Beginning Inventory Regular 2 Overtime Subcontract Regular 0 Overtime Subcontract What is the value of A? O11 14 17 Demand 22 A 2700 B 200 Capacity 100 1000 200 300 1000 200 300
Solve for the Production Plan (copy the information to your printed table).
What is the value of B?
00
100
200
300
The total cost for all units produced during the 2nd quarter = $_
$19.500
O $17,300
$31,400
O $2,600
$1,400
Transcribed Image Text:Solve for the Production Plan (copy the information to your printed table). What is the value of B? 00 100 200 300 The total cost for all units produced during the 2nd quarter = $_ $19.500 O $17,300 $31,400 O $2,600 $1,400
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