Question: LMNO Gaskets has seeks an optimal production plan for a product to meet demand over the upcoming three quarters. Demand in each of the three

LMNO Gaskets has seeks an optimal production plan for a product to meet demand over the upcoming three quarters. Demand in each of the three quarters and production, overtime, and subcontracting capacities are reported in the table below. The relevant costs are:

Regular time production cost is $12/unit.

Overtime production cost is $18/unit.

Subcontracting cost is $20/unit.

Inventory is held at a cost of $5/unit/quarter.

Units may be backordered at a cost of $8/unit/quarter

Production Resource	Demand in Quarter			Capacity
Production Resource	Q1	Q2	Q3	Capacity
Regular Time Q1				500
Overtime Q1				250
Subcontract Q1				550
Regular Time Q2				500
Overtime Q2				250
Subcontract Q2				550
Regular Time Q3				500
Overtime Q3				250
Subcontract Q3				550
Demand in Quarter	1100	1900	625

What is the cost of the optimal production plan (Use EXCEL Solver)?

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