Aggregate Planning and Master scheduling Solve A manager has prepared a forecast of expected aggregate demand for the next six months. Period Forecast 1 80 2 3 100 120 5 100 4 110 6 90 Develop an aggregate plan to meet this demand given this additional information: A level production rate of 100 units per month will be used. Using inventory (holding costs are $1 per unit per month) to absorb the uneven demand but allowing some backlog (charged at the rate of $8 per unit per month) Determine the cost of this plan if regular time cost is $20 per unit and beginning inventory is zero. 6 Period 1 Total 5 3 2 4 ac Forecast Output (Production in certain period) Regular Output - Forecast Inventory Beginning Ending Average Backlog Cost Output Regular Inventory Back order Total