Question: Consider the following aggregate planning problem for one quarter. Regular Time Overtime Subcontracting Production capacity / month 1 , 0 0 0 2 0 0
Consider the following aggregate planning problem for one quarter.
Regular Time
Overtime
Subcontracting
Production capacitymonth
Production costunit
$
$
$
Assume that there is no initial inventory and a forecasted demand of units in each of the months. Carrying cost is $ per unit per month. Solve this aggregate planning problem for Production Manager Victor Shi using the transportation method.
Part
Using the transportation method and assuming that backorders are not permitted, the optimal total costequals$
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