Jerusalem Medical Ltd., an Israeli producer of portable kidney
dialysis units and other medical products, develops a 4-moth
aggregate plan. Demand and capacity (in units) are forecast
follows:
| CAPACITY SOURCE | MONTH 1 | MONTH 2 | MONTH 3 | MONTH 4 | |
| Labor | |||||
| Regular Time | 245 | 275 | 280 | 300 | |
| Overtime | 15 | 28 | 26 | 28 | |
| Subcontract | 14 | 15 | 15 | 15 | |
| Demand | 260 | 318 | 311 | 305 |
The cost of producing each dialysis unit is $985 on regular
time, $1,310 on overtime, and $1,600 on a subcontract. Inventory
carrying cost is $100 per unit per month. There is to be no begging
or ending inventory in stock and backorders are not permitted. Set
up a production plan that minimizes cost using the transportation
method. (State all your assumptions)
Minimizong cost using the transportation method, the
optimal cost is:_____
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