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Mousetraps. A company faces the aggregate planning problem shown in the table below. The cost of regular production is $15 per unit, the cost of
Mousetraps. A company faces the aggregate planning problem shown in the table below. The cost of regular production is $15 per unit, the cost of producing the same unit on overtime is $22.50, the cost of subcontracting is $27 per unit, and the cost of carrying a unit in inventory from one month to the next is $1 July August September October November Forecast 800 650 450 550 900 Beginning Inventory 140 Regular Time Overtime Subcontracting Ending Inventory The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 units in any five-month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants
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