Question: 3) Create a minimum cost chase plan for the forecast shown in the table. There is no beginning inventory and regular production capacity is 350

3) Create a minimum cost chase plan for the forecast shown in the table. There is no beginning inventory and regular production capacity is 350 units and costs $8 per unit. Overtime costs $19 and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $14 per unit. What is the total plan cost?

Hint: In a chase production plan, production is changed each time period to match the demand. Use regular production, overtime, and subcontracting to create the plan.

Month	Forecast	Regular	Overtime	Subcontracting
January	250
February	400
March	500
April	350

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