College Press publishes textbooks for the college market. The demand for college textbooks is high during the beginning of each semester and then tapers off during the semester. The unavailability of books can cause a professor to switch adoptions, but the cost of storing books and their rapid obsolescence must also be considered. Given the demand and cost factors shown here, use the transportation method to design an aggregate production plan for College Press that will economically meet demand. What is the cost of the production plan?
Months Demand Forecast
February–April ..........5,000
May–July ............10,000
August–October ..........30,000
November–January .........25,000

Regular capacity per quarter .........10,000 books
Overtime capacity per quarter .........5,000 books
Subcontracting capacity per qtr ........10,000 books
Regular production rate .............$20 per book
Overtime wage rate .............$30 per book
Subcontracting cost .............$35 per book
Holding cost................$2.00 per book