Consider the following aggregate planning problem for one quarter:
Regular Time Overtime Subcontracting
Production Capacity/Month 1,000 200 150
Production Cost/Month 5 7 8
Assume that there is no initial inventory and there is forecasted demand of 1,250 units in each month in the quarter. Carrying cost is $1 per unit per month, and backlogs are not allowed. Use the transportation model to find the optimal solution.
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Consider the following aggregate planning problem for one quarter:
Regular Time Overtime Subcontrac...
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