Question

Jerusalem Medical? Ltd., an Israeli producer of portable kidney dialysis units and other medical? products, develops a? 4-month aggregate plan. Demand and capacity? (in units) are forecast as? follows:

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Capacity Source	Month 1	Month 2	Month 3	Month 4
Labor
??????Regular time	225	275	300	300
??????Overtime	15	24	26	24
Subcontract	14	15	13	15
Demand	240	314	331	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.

Minimizing cost using the transportation method, the optimal cost is $ ________ ?(enter your response as a whole? number).

Answer 1