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Jerusalem Medical​ Ltd., an Israeli producer of portable kidney dialysis units and other medical​ products, develops a​

Posted: Tue Apr 26, 2022 12:56 pm
by answerhappygod
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
Month 1
Month 2
Month 3
Month 4
Labor
      Regular time
225
265
280
300
      Overtime
15
24
26
22
Subcontract
12
15
15
17
Demand
240
304
311
305
The cost of producing each dialysis unit is ​$985 on
regular​ time, ​$1,310 on​ overtime, and ​$1,600 on a
subcontract. Inventory carrying cost is ​$100 per unit per month.
There is to be no beginning or ending inventory in stock and
backorders are not permitted. Part 2
1. Minimizing cost using the transportation​ method, the
optimal cost is
​$