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The production planning period for flat-screen monitors at Georgia's Fernandez Electronics Inc. is 4 months. Cost data are as follows:
The production planning period for flat-screen monitors at Georgia's Fernandez Electronics Inc. is 4 months. Cost data are as follows:Item Cost 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:Month 1 Month 2 Month 3 Month 4 Demand 2,000 2,500 1.500 2,100 Regular-Time Capacity 1,500 1,600 750 1600 Overtime Capacity 400 400 200 400 Subcontract Capacity 600 600 600 600 Fernandez Electronics Inc. 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 in the first month). a) Submit a production plan that minimizes costs using the transportation model
