Compute the total cost for each aggregate plan using these unit costs:

Regular output = $40 Overtime = $50 Subcontract = $60 Average Balance Inventory = $10

a. Month Jan Feb Mar Apr May Jun Forecast Output 300 320 320 340 320 320 Regular 300 300 300 300 300 300 Overtime 20 20 20 20 20 20 Subcontract 0 0 0 0 0 0 Output—Forecast Inventory Beginning Ending Average

b. Month Jul Aug Sep Oct Nov Dec Forecast 320 340 360 380 400 400 Output Regular 300 300 300 300 300 300 Overtime 20 20 20 20 30 30 Subcontract 20 30 40 40 60 70 Output—Forecast Inventory Beginning Ending Average

c. (Refer to part

b) After complaints from some workers about working overtime every month during the first half of the year, the manager is now considering adding some temporary workers for the second half of the year, which would increase regular output to a steady 350 units a month, not using any overtime, and using subcontracting to make up needed output.
Determine the total cost of that plan. LO.1