$$(a)$$$$\,\,\,\,\,\,\,\,$$ Compute the cost corresponding to the present solution
$$(b)$$$$\,\,\,\,\,\,\,\,$$ It is optimal?
$$(c)$$$$\,\,\,\,\,\,\,\,$$ Does an alternate optimum exist ?
The following costs are given :
Cost of regular time production $$=$$ Rs. $$20$$ per unit
Cost of overtime production $$=$$ Rs. $$25$$ Per unit
Cost of hiring $$=$$ $$200{L^2}$$
where $$'L'$$ is the increase in daily capacity
Inventory $$=$$ Rs. $$10$$ per unit per month (based on average inventory)
Shortage (back-ordering cost) $$=$$ Rs. $$20$$ per unit per month
The beginning inventory is $$100$$ units. The company decides to produce $$800,$$ $$700$$ and $$900$$ units respectively in the three months. Compute the cost of the production plan.
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