Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units an

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: Month 1 Month 2 Month 3 Month 4 Capacity Source Labor 275 28 15 318 300 26 13 331 300 28 15 305 Regular time Overtime 225 15 Subcontract Demand 240 The cost of producingeach 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 S(enter your response as a whole number)

Explanation / Answer

225 x 875 +15 x 1310 = 216,525

275 x 875 + 28 x 1310 + 15 x 1600 =301,455 300 x 875 + 26 x 1310 + 13 x 1600 =317,360 300 x 875 + 28 x 1310 = 299,180

216,525 + 301,455 + 317,360 + 299,180 =

1,134,520

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