Question 7)

7) A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units, and in period 2, demand is 150 units. The manager has 125 hours of regular employment available for $10 /hour each period. In addition, 50 hours of overtime are available for $15/ hour each period. If holding costs are $2 per unit each period, how many hours of regular employment should be used in period 1 ? (Assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour.) A) 100 B) 125 C) 150 D) 50 E) none of the above