Aggregate Planning Example Production Cost $100/unit Subcontracting Cost $200/unit Inventory Cost $20/unit/month Initial Inventory 100 units safety stock OT Cost $150/unit (limited to 200 units/month) Level Plan at average Month Sub J Demand Produce Begin Inv End Inv Ave Inv OT 700 600 400 F M . 650 M 850 J 1000 Plan Costa Chase Plan with regular time limit of 600 units Month Sub J F M A M Demand Produce Begin Inv End Iny Ave Inv OT 700 600 400 650 850 J 1000 Plan Cost=