Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following information. MONTH 1 2 3 4 5 6
Demand 160 150 160 180 170 140
Capacity
Regular 150 150 150 150 160 160
Overtime 10 10 0 10 10 10
Cost Per Unit
Regular time $50
Overtime 75
Subcontract 80
Inventory holding, per month 4
Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No back orders are allowed.