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).