MTI, a global telecommunications company, manufactures cable boxes and DVRs for its customers. Demand varies considerably from quarter to quarter. Using the demand, capacities, and cost figures given below, devise an aggregate production plan for MTI that minimizes costs.

Regular production cost per unit .......$20
Overtime production cost per unit ........$25
Subcontracting cost per unit ........$30
Inventory holding cost per unit per period .....$3

Transcribed Image Text:

Regular Overtime Subcontracting Period Demad Capacity Capacity Capacity 500 1200 1000 2500 1000 1900 1000 500 500 500 500 1000 200 200 200 200