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
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
$
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
$