Jerusalem Medical​ Ltd., an Israeli producer of portable kidney dialysis units and other medical​ products, develops a​ 4-month aggregate plan. Demand and capacity​ (in units) are forecast as​ follows:                                                                                                                    Capacity Source Month 1 Month 2 Month 3 Month 4 Labor               Regular time 245 265 300 300       Overtime 15 24 26 22 Subcontract 14 15 13 15 Demand 260 304 331 305 The cost of producing each dialysis unit is $875 on regular​ time, ​$1310 on​ overtime, and $1500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation​ method, the optimal cost is ???​$ ​(enter your response as a whole​ number).

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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Jerusalem Medical​ Ltd., an Israeli producer of portable kidney dialysis units and other medical​ products, develops a​ 4-month aggregate plan. Demand and capacity​ (in units) are forecast as​ follows:

                                                                                                                  

Capacity Source

Month 1

Month 2

Month 3

Month 4

Labor

       

      Regular time

245

265

300

300

      Overtime

15

24

26

22

Subcontract

14

15

13

15

Demand

260

304

331

305

The cost of producing each dialysis unit is $875 on regular​ time,

​$1310 on​ overtime, and $1500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation​ method,

the optimal cost is ???​$

​(enter your response as a whole​ number).

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