Develop a level production plan for the compressor demand forecast in problem 9 by using overtime, inventory, and backlogs to absorb demand fluctuations. Inventory holding costs are $10 per month per compressor and backlog costs are $80 per compressor per month.

Data from problem 9

The manager of a company that produces compressors for refrigerators has developed the following forecast for compressor demand:

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Month "7 130 150 145 Forecast 140 155 155 145