Problem 5 (25 points) Luminous Technologies manufactures 4k Blu-ray players. Demand for this product from quarter to quarter varies significantly making in-house capacity planning challenging. To enable the fulfillment of orders, the company fills any gaps with overtime and subcontracting. The table below provides the demand and capacity through regular production, overtime production, and subcontracting for the next four quarters. Using the transportation method and the table illustrated in class, create an optimal aggregate production plan for Luminous Technologies that minimizes the company's costs and answer the questions below. Assume there are no units in inventory at the beginning of quarter 1 and back ordering is not permitted. You must show your work through the transportation method table to obtain credit. Quarter Demand 500 1200 2500 1900 Regular Capacity 1000 1000 1000 1000 Overtime Capacity 200 200 200 200 Subcontracting Capacity 500 500 500 500 Regular production cost per unit: Overtime production cost per unit: Subcontracting cost per unit: Inventory holding cost per unit per period: a) How many Blu-ray players should be produced in Regular production? b) How many Blu-ray players should be produced in Overtime production? c) How many Blu-ray players should be provided through Subcontracting? d) How much of the available capacity goes unused? In addition to the amount, identify the category associated with the unused capacity (i.e., Regular, Overtime, Subcontracting), e) What is the cost of the optimal aggregate plan? Problem 5 (25 points) Luminous Technologies manufactures 4k Blu-ray players. Demand for this product from quarter to quarter varies significantly making in-house capacity planning challenging. To enable the fulfillment of orders, the company fills any gaps with overtime and subcontracting. The table below provides the demand and capacity through regular production, overtime production, and subcontracting for the next four quarters. Using the transportation method and the table illustrated in class, create an optimal aggregate production plan for Luminous Technologies that minimizes the company's costs and answer the questions below. Assume there are no units in inventory at the beginning of quarter 1 and back ordering is not permitted. You must show your work through the transportation method table to obtain credit. Quarter Demand 500 1200 2500 1900 Regular Capacity 1000 1000 1000 1000 Overtime Capacity 200 200 200 200 Subcontracting Capacity 500 500 500 500 Regular production cost per unit: Overtime production cost per unit: Subcontracting cost per unit: Inventory holding cost per unit per period: a) How many Blu-ray players should be produced in Regular production? b) How many Blu-ray players should be produced in Overtime production? c) How many Blu-ray players should be provided through Subcontracting? d) How much of the available capacity goes unused? In addition to the amount, identify the category associated with the unused capacity (i.e., Regular, Overtime, Subcontracting), e) What is the cost of the optimal aggregate plan
