Question: 1. DEF Company would like to develop an aggregate plan for the next 6 months via the transportation method. Forecasted demands for the next 6

1. DEF Company would like to develop an aggregate plan for the next 6 months via the transportation method. Forecasted demands for the next 6 months are shown in the table below. Month 1 2 3 4 5 6 Demand (Units) 850 1040 1260 1800 1400 1150 The available capacity of regular time, overtime and subcontract is as follows: Supply Capacity Available (units) Month Regular time Overtime Subcontract 800 160 400 2 850 180 400 3 850 180 400 4 900 200 400 5 950 220 400 6 1000 240 400 The firm wants all demands to be met at the end of the month 6 and its ending inventory to be 400 units. Initial inventory is 200 units. Other costs are as in the table below: $1.5 $4.5 Holding cost per unit per period Stock-out cost per unit per period Regular-time cost per unit Overtime cost per unit Subcontract cost per unit $50 $75 $90 a) Find the optimum aggregate plan using Excel Solver b) What is the total cost of the optimum aggregate plan

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