Question: Determine the total cost for this plan given the following forecast: Month May Jun Jul Aug Sep Oct Nov Dec Jan Feb March April May

Determine the total cost for this plan given the following forecast:
Month May Jun Jul Aug Sep Oct Nov Dec Jan Feb March April May June July
Forecast 480410420440470490480420480500480500510500520
Use steady regular output of 400 units per month, use overtime as needed for up to 40 units per month, and use subcontracting to make up any needed output to match the forecast. Unit costs are:
Regular output $35
Overtime $45
Subcontract $70
Holding costs $3
Lost sales $15

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