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: Capacity Source Labor Regular time Overtime Subcontract Demand Month 1 245 15 12 260 Month 2 275 24 17 316 Month 3 300 26 20 336 Month 4 300 18 17 301 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).

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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:
Capacity Source
Labor
Regular time
Overtime
Subcontract
Demand
Month 1
245
15
12
260
Month 2
275
24
17
316
Month 3
300
26
20
336
Month 4
300
18
17
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).
Transcribed Image Text: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: Capacity Source Labor Regular time Overtime Subcontract Demand Month 1 245 15 12 260 Month 2 275 24 17 316 Month 3 300 26 20 336 Month 4 300 18 17 301 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).
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