devised annually and updated quarterly. Cost data, expected demand, and available capacities in units for the next four quarters are given here. Demand must be satisfied in the period it occurs; that is, no backordering is allowed. Design a production plan that will satisfy demand at minimum cost. [5] Regular production cost per unit S45 Overtime production cost per unit $50 Subcontracting cost per unit $53 Inventory holding cost per unit per period $7 Beginning inventory 300 units Quarker Expected Demand Regular Capacity Overtime Capacity Subcontract Capacity 1 900 1000 100 500 2 1500 1200 500 150 3 1300 200 500 1600 200 4 1300 500 3000