Jerusalem Medical Ltd., an Israeli producer of port- able kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows:...

Jerusalem Medical Ltd., an Israeli producer of port-
able 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 235 255 290 300
Overtime 20 24 26 24
Subcontract 12 15 15 17
Demand 255 294 321 301
The cost of producing each dialysis unit is $985 on regular time,

$1,310 on overtime, and $1,500 on a subcontract. Inventory car-
rying cost is $100 per unit per month. There is to be no beginning

or ending inventory in stock and backorders are not permitted.

Set up a production plan that minimizes cost using the transpor-
tation method.