Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops...

 

Transcribed Image Text:

Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: D Month 2 Month 3 Capacity Source Labor Regular time. Overtime Subcontract Demand Month 1 225 15 14 240 275 24 15 314 280 26 20 316 Month 4 300 24 17 301 The cost of producing each dialysis unit is $985 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation method, the optimal cost is $ (enter your response as a whole number). Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: D Month 2 Month 3 Capacity Source Labor Regular time. Overtime Subcontract Demand Month 1 225 15 14 240 275 24 15 314 280 26 20 316 Month 4 300 24 17 301 The cost of producing each dialysis unit is $985 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation method, the optimal cost is $ (enter your response as a whole number).

Answer rating: 100% (QA)

Month 1 225 regular with cost of 225875 196875 15 Over time with cost of 151310 19650 o Sub... View the full answer