Question: A manager has prepared a forecast of expected aggregate demand for the next six months. Develop a level aggregate production plan to meet this demand
A manager has prepared a forecast of expected aggregate demand for the next six months. Develop
a level aggregate production plan to meet this demand given this additional information: A level
production rate of units per month will be used. Backorders are allowed, and they are charged at
the rate of $ per unit per month. Inventory holding costs are $ per unit per month. Regular time
cost is $ per unit and beginning inventory is zero.
What is the total cost in the first month considering the above plan?
a
b
c
d
e
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