Jerusalem Medical Ltd., an Israeli producer of port-able kidney dialysis units and other medical products, develops a 4- month aggregate plan. Demand and capacity ( in units) are forecast as follows:

The cost of producing each dialysis unit is $ 985 on regular time, $ 1,310 on overtime, and $ 1,500 on a subcontract. Inventory carrying cost is $ 100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Set up a production plan that minimizes cost using the transportationmethod.

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CAPACITY SOURCE MONTH 1 MONTH 2 MONTH 3MONTH 4 Labor 235 20 12 255 255 24 15 294 290 26 15 321 Regular time Overtime 300 24 17 301 Subcontract Demand