Aggregate demand for a product family is given in the table below for the the upcoming 3 quarters. Production cost on regular time is $30 per
unit. Production cost on overtime is $46 per unit. Subcontract: $53. The inventory cost is $3 per unit per quarter. The backorder cost is $7 per unit per
quarter. Demands capacities and a feasible aggregate plan are given in the table below. Compute the total cost of
meeting demand for the three quarters.
Q1
Q2
Q3
Capacity
Reg Q1
400
0
0
400
Ovt Q1
200
0
0
200
Sub Q1
200
100
0
300
Reg Q2
0
400
0
400
Ovt Q2
0
200
0
200
Sub Q2
0
300
0
300
Reg Q3
0
0
400
400
Ovt Q3
0
0
200
200
Sub Q3
0
200
80
300
Demand
800
1200
680