A manufacturer of industrial seafood processing equipment wants you to develop an aggregate plan for the four quarters of the upcoming year using the following data on demand and capacity. Demand for 4 quarters are as follows -Q1 200, Q2 750, Q3 1200, Q4 450. Regular time capacity for Q1 is 400, Q2 400, Q3 800, Q4 400. Overtime capacity for Q1 is 80, Q2 80, Q3 160, Q4 80. Subcontracting capacity is 100 each quarter. Initial inventory is 250. Regular time cost is $1.25/unit. Overtime cost is $1.50/unit. Subcontracting cost is $2.00/unit. Carrying cost is 0.50/unit/quarter. No back ordering is allowed Find the optimal plan using the transportation method. 3360 What is the cost of the plan? Does any regular time capacity go unused throughout the four period 10 plan? If so, how much? What was the total holding cost (in dollars) for the four period plan? 250 If 30 units were required as ending inventory carried into the next period, based on evaluating the lowest cost in regards to excess capacity, how much would be added to the total cost? 45
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