Question: Set the following problem and solve for the minimum cost plan. Period Feb Mar Apr Demand 55 70 75 Capacity Regular 50 50 50 Overtime

Set the following problem and solve for the minimum cost plan.

Period

Feb

Mar

Apr

Demand

55

70

75

Capacity

Regular

50

50

50

Overtime

5

5

5

Subcontract

12

12

10

Beginning Inventory

10

Costs

Regular time

$60 per unit

Overtime

$80 per unit

Subcontract

$90 per unit

Inventory carrying cost

$1 per unit per month

Back order cost

$3 per unit per month

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