Question: A spring - water bottling company has recently expanded into flavoured water. The marketing manager is predicting an upturn in demand based on the new
A springwater bottling company has recently expanded into flavoured water. The marketing manager is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months in truckloads:MonthMay Jun Jul AugSeptOct TotalForecastThe production manager has gathered the following information:Beginning inventoryStevenson, W J Hojati, M & Cao, J Operations Management, th Canadian Edition, McGrawHill Ryerson.McGrawHill Ryerson Limited, All rights reserved. Regular production cost$ per truckloadRegular production capacity truckloads per month using employeesOvertime production cost$ per truckloadHolding cost$ per truckload per monthBackorder cost$ per truckload per
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