Question: A manager has prepared a forecast of expected aggregate demand. Develop an aggregate plan that assumes: A level production rate, back orders are allowed and
- A manager has prepared a forecast of expected aggregate demand. Develop an aggregate plan that assumes: A level production rate, back orders are allowed and are charged at the rate of $15 per unit per month, inventory holding costs are $2 per unit per month in average inventory, regular time cost is $7 per unit and beginning inventory is zero. Show the aggregate plan and determine the cost of this plan. (15 pts)
Month Forecast
- 270
- 310
- 280
- 350
- 310
6.280
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