Question: 2. Develop an aggregate plan through allocate production capacity to meet demand at a minimum cost using the transportation method. What is the cost? Assume

2. Develop an aggregate plan through allocate

2. Develop an aggregate plan through allocate production capacity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Period Regular Time Overtime Subcontract Demand Forecast 1 30 10 5 40 35 12 5 50 3 30 10 5 40 Initial inventory 20 units. The cost of producing each unit is $100 on regular time, $150 on overtime, and $200 on a subcontract. Inventory carrying cost is $4 per unit per month. 2

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