You own a production facility for which you have to prepare anaggregate plan for the Product A. Develop a 6-monthproduction plan for your facility using the transportationmethod.
The forecasted demand for Product A for months January to Juneis as follows:
January = 1000; February = 1200; March = 1250, April = 1450; May= 1400; and June = 1300.
Cost data are as follows:
Regular time cost per unit (January – April) – $12.00; Regulartime cost per unit (May – June) – $11.00
Overtime cost per unit (during entire period) – $16.00;
Cost of procuring from outside per unit – $18.50;
Carrying cots per unit per month – $1.00.
You
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