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A company has demand forecast over the next 4 months are 300, 850, 1500, 650 units consequently. Initial inventory is 250 units at the beginning.
A company has demand forecast over the next 4 months are 300, 850, 1500, 650 units consequently. Initial inventory is 250 units at the beginning. The production capacities of the company by regular time for the next4 months are 450, 450, 750 and 450 units consequently. The company will go on overtime if necessary and the overtime production capacity in units are 90, 90, 150 and 90 consequently. The company can deliver 200 units at most in each month by subcontracting when necessary. Backorder is not allowed for the production plan. The cost data are given in the table below. costs regular over subcontract inventory carrying (holding) $100 $150 $190 perunit perunit perunit $30 perunit per month a) Develop the aggregate plan using transportation method. b) What is the total cost of plan? c) Formulate the LP (linear programming) model of the transportation problem given in the
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