Question: A manager is attempting to put together an aggregate plan for the coming nine months. She has obtained a forecast of expected demand for the

  1. A manager is attempting to put together an aggregate plan for the coming nine months. She has obtained a forecast of expected demand for the planning horizon. The department has 20 full time employees each of whom produces 10 units of output per period at a cost of $6 per unit. Beginning inventory of period 1 is zero. Inventory carrying cost is $5 per unit per period and backlog cost is $10 per unit per period.

Period

1

2

3

4

5

6

7

8

9

Forecast

190

230

260

280

210

170

160

260

180

Determine the total cost of the plan, including production, inventory and backorder costs.

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