Question
Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a showpiece for display in Mexican restaurants. His forecast
Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a "showpiece" for display in Mexican restaurants. His forecast of capacity and demand follows: Month 1 2 3 4 5 Demand 150 150 140 240 210 Capacity Regular time 150 140 160 160 150 Overtime 20 30 20 20 10 Subcontracting: 100 units available over the 5-month period Beginning inventory: 0 units Ending inventory required: 20 units Costs Regular-time cost per unit $90 Overtime cost per unit $115 Subcontract cost per unit $128 Inventory holding cost per unit per month $4 Assume that backorders are not permitted. Using the transportation method, the total cost of the optimal plan is $ nothing (enter your response as a whole number).
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