Wormwood, Ltd., produces a variety of furniture products

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, per period    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. (Negative amounts should be indicated by a minus sign. Leave no cells blank – be certain to enter “0″ wherever required. Omit the “$” sign in your response.)

Here’s the SOLUTION

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