Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to pre-pare an aggregate plan for the next six months using the following information:

Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No back orders are allowed. Regular capacity Regular production.

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Month Cost Per Unit Demand Capacity Regular time Overtime Subcontract $50 75 80 160 150 160 180 170 140 Regular 150 150 150 150 160 160 Invntory holding, per month 4 Overtime 10 10 010 10 10