Assignment:
Planners for a company that makes several models of skis are about to prepare an aggregate plan that will cover 6 periods. They have assembled the following information: Period 1 2 3 4 5 6 Forecast 200 200 600 200 300 200 Capacity Regular: 300 units per period Costs Regular output: $2 per unit Overtime output: $3 per unit Subcontract: $6 per unit Inventory: $1 per unit per period Back order: $5 per unit per period Beginning Inventory: 0 Use a level capacity production plan. Assume that overtime and subcontracting is not allowed. Backordering may be used when necessary. You may use the spreadsheet below to aid you in your computations. Period 1 2 3 4 5 6 Forecast 200 200 600 200 300 200 Output: Regular Overtime Subcontract Output- Forecast Inventory Beginning 0 Ending Average Backlog The total cost of this plan under a level capacity is
The total cost of this plan under a level capacity is
Select one:
a. $4900
b. $4650
c. $4700
d. $4450
e. $4500