Question: A production manager uses the level strategy to develop an aggregate plan. The following chart shows the forecast of monthly demand vs the production level.

A production manager uses the level strategy to
A production manager uses the level strategy to develop an aggregate plan. The following chart shows the forecast of monthly demand vs the production level. What is the total cost of the plan? 100 700 sod SOO 400 . 1 2 3 4 5 6 Month Starting Capacity 500 units Beginning inventory Zero Stockout cost $50 per unit Inventory holding cost 55 per unit at end of month Hiring workers S4 per unit Laying off workers 58 per unit Unit cost(regular time) 530 per unit Overtime S10 extra per unit Outsourcing $45 per unit Less than 597,0001 Between 599,001 and $100,000 Between 597,001 and 598,000 Between 598,001 and 599,000

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