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 100 units per month will be used. Backorders are allowed, and they are charged at
the rate of $8 per unit per month. Inventory holding costs are $1 per unit per month. Regular time
cost is $20 per unit and beginning inventory is zero.
24. What is the total cost in the first month considering the above plan?
a.2500
b.2010
c.2050
d.1900
e.2020

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