САРАСITY SOURCE MONTH 2 MONTH 3 MONTH 4 ΜΟΝΤΗ 1 Labor Regular time 235 255 290 300 Overtime 20 24 26 24 Subcontract 12 15 15 17 Demand 255 294 321 301

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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:                                                                                                                                                The cost of producing each dialysis unit is $985 on regular time,
$ 1,310 on overtime, and $1,500 on a subcontract. Inventory carrying
cost is $100 per unit per month. T here is to be no beginning or ending
inventory in stock and back orders are not permitted. Set up a production
plan that minimizes cost using the transportation method.
САРАСITY
SOURCE
MONTH 2 MONTH 3 MONTH 4
ΜΟΝΤΗ 1
Labor
Regular time
235
255
290
300
Overtime
20
24
26
24
Subcontract
12
15
15
17
Demand
255
294
321
301
Transcribed Image Text:САРАСITY SOURCE MONTH 2 MONTH 3 MONTH 4 ΜΟΝΤΗ 1 Labor Regular time 235 255 290 300 Overtime 20 24 26 24 Subcontract 12 15 15 17 Demand 255 294 321 301
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