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Business, 14.02.2021 07:30 ruben0018

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 3a 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.

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