Question

Jerusalem Medical Ltd., an Israeli producer of port-able kidney dialysis units and other medical products, develops a 4- month aggregate plan. Demand and capacity ( in units) are forecast as follows:


The cost of producing each dialysis unit is $ 985 on regular time, $ 1,310 on overtime, and $ 1,500 on a subcontract. Inventory carrying cost is $ 100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Set up a production plan that minimizes cost using the transportationmethod.


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  • CreatedMarch 20, 2014
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