Solve this question by:

a) least cost method

b) northwest method

c) vogel's approximation method

PROBLEM 24 A company is expected to face in the next four months monthly demands of 95, 120, 110 and 100 units of products. The production capacity is 90 units per month at a cost of 20 per unit in regular employment. The overtime, which can reach 20% of normal, costs 3Oper unit. The storage cost is 1 per unit and per month, while the cost for late delivery of order is 3. The company is worried about the high cost of overtime expenses and thinks to make a limited expansion of its facilities so that the normal capacity to be increased to 99 units in order to reduce overtime, which seem to overburden the operating costs. The total production capacity will not be changed. If the company is getting expanded at the beginning of the four months, the costs will remain the same. If it extends at the beginning of the 3rd month, then the cost will be increased by 1, but according to latest legislative incentives for the extension will receive a subsidy by the government with 400. What exactly would you suggest the company to do? PROBLEM 24 A company is expected to face in the next four months monthly demands of 95, 120, 110 and 100 units of products. The production capacity is 90 units per month at a cost of 20 per unit in regular employment. The overtime, which can reach 20% of normal, costs 3Oper unit. The storage cost is 1 per unit and per month, while the cost for late delivery of order is 3. The company is worried about the high cost of overtime expenses and thinks to make a limited expansion of its facilities so that the normal capacity to be increased to 99 units in order to reduce overtime, which seem to overburden the operating costs. The total production capacity will not be changed. If the company is getting expanded at the beginning of the four months, the costs will remain the same. If it extends at the beginning of the 3rd month, then the cost will be increased by 1, but according to latest legislative incentives for the extension will receive a subsidy by the government with 400. What exactly would you suggest the company to do