Parts Inc., produces cooking oil. a planner has developed an aggregate forecast for demand (in cases) for the next four months months march 1200 april 9800 may 5200 june 18000.
regular production cost: $14.75 / case
regular production capactity: 12500 cases
overtime production cost: $32.50 / case
subcontracting cost: $80/case
holding cost: $5 / case/ month
Beginning inventory: 1,000 cases
Develop an aggregate plan using a level production to compute the total cost for the plan. supplement using overtime as needed. note: backlogs are not allowed.