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Business, 11.05.2021 21:40 kenna0

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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