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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 Month 1 Month 2 Month 3 Month 4
Labor
Regular time 245 275 280 300
Overtime 15 28 26 22
Subcontract 12 17 13 17
Demand 260 320 311 305
The cost of producing each dialysis unit is $875 on regular? time, $1,310 on? overtime, and $1,500 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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