The total cost of the optimal plan is

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Reference no: EM131844166

Jose Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a "showpiece" for dis- play in Mexican restaurants.

He needs to develop a 5-month aggre- gate plan. His forecast of capacity and demand follows:


1

2

3

4

5

Demand

150

160

130

220

220

Capacity






Regular

150

150

150

150

160

Overtime

20

30

20

20

10

Subcontracting: 80 units available over 5-month period

Beginning inventory: 0 units

Ending inventory required: 10 units

Regular-time cost per unit

$90

Overtime cost per unit

$115

Subcontract cost per unit

$125

Inventory holding cost per unit per month

$3

Assume that backorders are not permitted.

Using the transportation method the total cost of the optimal plan is_______$ squareroot (enter your response as a whole number).

Reference no: EM131844166

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