The production planning period for knobs at Al-Arabi Factory, Egypt, is 6 months. Cost data is as follows:

Regular-time cost per knob E£50 Overtime cost per knob E£60 Subcontracting cost per knob E£70 Carrying cost per knob per month E£ 2 For each of the next 6 months, capacity and demand data for knobs are as follows:

MONTH JAN FEB MAR APR MAY JUN Demand 800 1,000 1,200 1,400 1,200 1,000 Capacity Regular time 800 800 800 800 800 800 Overtime 200 200 200 200 200 200 Subcontracting 400 Develop a production plan that minimizes costs using the transportation method. Subcontracting is allowed in April only and no backorders are allowed. lop52