Question
Jerusalem MedicalLtd., an Israeli producer of portable kidney dialysis units and other medical products, develops a4-month aggregate plan. Demand and capacity(in units) are forecast asfollows:
Jerusalem MedicalLtd., an Israeli producer of portable kidney dialysis units and other medical products, develops a4-month aggregate plan. Demand and capacity(in units) are forecast asfollows:
Capacity Source | Month 1 | Month 2 | Month 3 | Month 4 |
Labor | ||||
Regular time | 225 | 265 | 280 | 300 |
Overtime | 15 | 24 | 26 | 18 |
Subcontract | 14 | 15 | 18 | 15 |
Demand | 240 | 304 | 316 | 301 |
The cost of producing each dialysis unit is $875 on regular time, $1,310 on overtime, and $1,600 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.
Part 2
Minimizing cost using the transportationmethod, the optimal cost is ___________ $(enter your response as a wholenumber).
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