| 13.15 The production planning period for flat-screen monitors at Louisiana’s Roa Electronics, Inc., is 4 months. Cost data are as follows: |
| Regular-time cost per monitor | $70 |
| Overtime cost per monitor | $110 |
| Subcontract cost per monitor | $120 |
| Carrying cost per monitor per month | $4 |
| For each of the next 4 months, capacity and demand for flat-screen monitors are as follows: |
| PERIOD |
| Month 1 | Month 2 | Month 3 a | Month 4 |
| Demand | 2,000 | 2,500 | 1,500 | 2,100 |
| Capacity |
| Regular time | 1,500 | 1,600 | 750 | 1,600 |
| Overtime | 400 | 400 | 200 | 400 |
| Subcontract | 600 | 600 | 600 | 600 |
| a Factory closes for 2 weeks of vacation. |
| CEO Mohan Roa expects to enter the planning period with 500 monitors in stock. |
| Back ordering is not permitted (meaning, for example, that monitors produced in the second month cannot be used to cover |
| first month’s demand). Develop a production plan that minimizes costs using the transportation method. |
Anger HU
excel.xlsx
