A company uses a level strategy for Aggregate Planning. The 3-month forecast is in the table below. Suppose that the beginning inventory of Month 1 is 0, and they would like to have no inventory at the end of Month 3. What production output level should they maintain Month 1 Forecast 100 2 130 3 100 100 120 100 for Month 1 and 3, and 130 for Month 2 110 A floral shop is deciding how much flowers to order for next week. One bunch of flowers costs $10, and it sells $20. Any fiowers not sold next week will become excessive inventory and be sold at $4 a bunch. What is the optimum service level of the flowers? 83.396 77.096 62.596 71.496 A company uses a mixed strategy for Aggregate Planning. The plan the next quarter is shown in the table below. Suppose that the beginning inventory of Month 1 is 0. The related cost items are listed below. What is the total backlog cost of the plan? Backlog cost = $20 per unit per month 1 550 2 450 3 500 Month Forecast Output Regular Overtime Subcontract $0 400 50 0 400 250 0 400 0 0 $2000 $3000 $2400 In the basic EQ model if both demand and holding cost increase, and everything else is the same, then the EOQ will decrease by square root of 2 will increase, but not double may increase or decrease, depending on the increase magnitude between demand and holding cost will decrease by a factor of 2