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Question: Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical p…



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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