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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 24 26 18
Subcontract 12 17 15 17
Demand 260 316 311 301
The cost of producing each dialysis unit is ?$875 on regular? time, ?$1,310 on? overtime, and ?$1,600 on a subcontract. Inventory carrying cost is ?$100100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation? method, the optimal cost is ?$ (enter your response as a whole? number).
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