Question: ( 3 ) An aggregate plan for four upcoming quarters cases of a fruit drink is to be developed. Demand for each quarter, production quantity

(3) An aggregate plan for four upcoming quarters cases of a fruit drink is to be developed. Demand for
each quarter, production quantity and ending inventory for the previous quarter, Quarter 0, are
provided. The relevant costs are:
Beginning inventory is 100 cases. Inventory cost/case/quarter is $5.
Regular time production capacity is 1800 cases and overtime production is limited to 300
cases.
Regular time production cost is $30? case. Overtime production cost is $45? case.
An unlimited number of cases can be subcontracted at a cost of $50? case.
Cost of labor fluctuation due to changes in production level from quarter to quarter are
accounted for as: $4 per unit of increase in production level and $8 per unit of decrease in
production level.
(a) Develop an aggregate plan using a 'produce to demand' strategy. Provide answers to the
questions that follow after completing the aggregate plan in the table below.
i.[5 points] What is the total of production level increases? ,900?
ii.[5 points] What is the total of production level decreases? ,1300
iii. points
 (3) An aggregate plan for four upcoming quarters cases of a

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