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PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 13-1 Practice Problems Problem 1: Set the following problem up in transportation format and solve for the minimum cost plan.

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PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 13-2 Practice Problems Problem 1: Set the following problem up in transportation format and solve for the minimum cost plan. Period FebMarApr Demand557075 Capacity Regular505050 Overtime555 Subcontract121210 Beginning Inventory10 Costs Regular time$60 per unit Overtime$80 per unit Subcontract$90 per unit Inventory carrying$1 per unit per month Back order$3 per unit per month

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PowerPoint presentation to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 13-3 Practice Problems Problem 1: Set the following problem up in transportation format and solve for the minimum cost plan. Period FebMarApr Demand557075 Capacity Regular505050 Overtime555 Subcontract121210 Beginning Inventory10 Costs Regular time$60 per unit Overtime$80 per unit Subcontract$90 per unit Inventory carrying$1 per unit per month Back order$3 per unit per month

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