### What will the additional cost of the optimal plan be

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##### Reference no: EM13968154

Given the following information set up the problem in a transportation table and solve for the minimum-cost plan: PERIOD 1 2 3 Demand 550 700 750 Capacity Regular 500 500 500 Overtime 50 50 50 Subcontract 120 120 100 Beginning inventory 100 Costs Regular time \$ 62 per unit Overtime \$ 82 per unit Subcontract \$ 96 per unit Inventory carrying cost \$ 3 per unit per month Back-order cost \$ 3 per unit per month Suppose that regular-time capacity will be reduced to 440 units in period 3 to accommodate a companywide safety inspection of equipment. An inventory carrying cost is \$3 per unit per period. What will the additional cost of the optimal plan be? (Omit the "\$" sign in your response.) Additional cost \$

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