Farnsworth Tire Company would like to develop an aggregate plan via the transportation method.

Data that relate to production, demand, capacity, and cost at its West Virginia plant are shown in Table 13.6

APPROACH c Solve the aggregate planning problem by minimizing the costs of matching production in various periods to future demands.

Transcribed Image Text:

TABLE 13.6 Farnsworth's Production, Demand, Capacity, and Cost Data SALES PERIOD MAR. 800 APR. 1,000 Demand Capacity: Regular Overtime Subcontracting Beginning inventory MAY 750 700 700 700 50 50 50 150 150 130 100 tires Regular time Overtime Subcontract Carrying cost COSTS $40 per tire $50 per tire $70 per tire $2 per tire per month