Question: 18.16 A large Saskatchewan feed mill, B. Swart Processing, prepares its six-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows:

18.16 A large Saskatchewan feed mill, B. Swart
18.16 A large Saskatchewan feed mill, B. Swart Processing, prepares its six-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January, 1000 bags, February, 1200; March. 1250, April, 1450: May, 1400; and June, 1400. The feed mill plans to begin the new year with no inventory left over from the previous year, and backorders are not permit- ted. It projects that capacity (during regular hours) for producing bags of feed will remain constant at 800 until the end of April, and C then increase to 1100 bags per month when a planned expansion is completed on May 1. Overtime capacity is set at 300 bags per month until the expansion, at which time it will increase to 400 bags per month. A friendly competitor in Alberta is also available as a backup source to meet demand, but can provide only 500 bags total during the six-month period. Develop a six-month production plan for the feed mill using the transportation method. Cost data are as follows 51200 Regular-time cosi per bag (until April 30) Regular-time cost per bag latter May 11 Overtime cost per bag (dung entire pend) Sro de SS50 Camin BASED

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