José Martinez of El Paso has developed a polishedstainless-steel tortilla machine that makes it a “showpiece” fordisplay in Mexican restaurants. He needs to develop a 5-monthaggregate plan. His forecast of capacity and demand follows:
| Month 1 | Month 1 | Month 1 | Month 1 | Month 1 |
| Demand | 150 | 160 | 130 | 200 | 210 |
| Capacity | | | | | |
| Regular | 150 | 150 | 150 | 150 | 150 |
| Overtime | 20 | 20 | 10 | 10 | 10 |
Additional information: Subcontracting: 100units available over the 5-month period, Beginning inventory: 0units
Costs:
Regular time cost per unit = $100
Overtime cost per unit = $125
Subcontract cost per unit = $135
Inventory holding cost per unit = $3
Assume that back-orders are not permitted.
a. Using the transportation method, what is the total cost ofthe optimal plan? [ Select ] ["$90,140", "$86,100", "$88,150", "$85,500"]
b. Does any regular time production go unused? [ Select ] ["cannot determine", "no", "yes"] If so/not, how much is usedor not used? 50 units
c. What is the total cost of the plan if ending inventoryrequired for the next planning period is: 20 units (include holdingcosts in the overall calculation)? [ Select ] ["$88,150", "$90,850", "$90,910", "$91,900"]
please answer all the questions with the right answer thanks
