Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a

Question:

Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a €œshowpiece€ for display in Mexican restaurants. He needs to develop a 5-month aggregate plan. His forecast of capacity and demand follows:

Subcontracting: 100 units available over the 5-month period
Beginning inventory: 0 units
Ending inventory required: 20 units
Costs_________________________________________
Regular-time cost per unit .......... $100
Overtime cost per unit............. $125
Subcontract cost per unit............ $135
Inventory holding cost per unit per month...... $ 3
Assume that backorders are not permitted. Using the transportation method, what is the total cost of the optimalplan?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...