Develop plan to minimize total cost-identify your total cost

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Reference no: EM131793198

Wormword Inc. faces forecasted demand of the following: Jan 170, Feb 150, March 160, April 190, May 170, June 140. Capacity for these months is 150, 150, 160, 150, 160, 160, and overtime to make 10 units can be used in all months except March and April. Cost per units are $55 regular time, $82.50 overtime, subcontracting $80, and inventory costs are $4.50 per month. Subcontracting capacity is 10 units per month. Beginning inventory is zero and backorders are not allowed. Develop a plan to minimize total cost and identify your total cost.

Reference no: EM131793198

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