Consider the following aggregate planning problem for one quarter regular time overtime sub contracting
Production capacity/ month 1,000 200 150
Production cost/unit 5 7 8
Assume that there is no initial inventory and a forecasted demand of 1,250 units in each of the 3 months. Carrying cost $1 per unit per month.
Using the transportation method and assuming that back orders are not permitted, the optimal total cost =$?