Demand

Regular time

capacity

Regular time

production

Inventory

$($end PD$)$

Units

decrease

Initial

Inventory $0.$

Period $11,400.1,425.1,425.25.125.$

Period $21,200.1,425.1,425.250.0.$

Period $31,600.1,425.1,425.75.0.$

Period $41,500.1,425.1,425.0.0.$

Total $($units$)5,700.5,700.5,700.350.125.$

@$$30/$unit @$$10/$unit @$$40/$unit

Subtotal Costs $171,000.3,500.5,000.$

Total Cost $179,500.$

Plan C

Demand

Regular

time

capacity

Sub$-$

contract

capacity

Regular

time

production

Sub$-$

contractin

g

Inventory

$($end PD$)$

Units

increase

Initial

Inventory $0.$

Period $11,400.1,350.300.1,350.50.0.50.$

Period $21,200.1,350.300.1,350.0.150.0.$

Period $31,600.1,350.300.1,350.100.0.0.$

Period $41,500.1,350.300.1,350.150.0.0.$

Total

$($units$)5,700.5,400.1,200.5,400.300.150.50.$

@$$30/$unit @$$60/$unit

@$$10/$

unit

@$$40/$

unit

Subtotal

Costs $162,000.18,000.1,500.2,000.$

Total Cost $183,500.$

Please see the other side of the page