Aggregate demand for a product family is given in the table below for the the

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