Answer 2 question

Aggregate Production Plan Planners for a company that makes several models of tractors are about to prepare the aggregate plan that will cover six periods. They have assembled the following information as in Table 1. They want to evaluate a plan that calls for a steady regular- time output. They intend to start with zero inventory on hand in the first period. Assume a level regular output rate of 6000 units per period with regular time. Given the planned ending inventory is zero. Period Forecast Cost 1 8000 2 10000 Table 1 3 3500 4 5000 5 6000 6 3500 Output Regular time Overtime = Inventory RM25 per unit RM20 per unit RM10 per unit per period on average inventory RM35 per unit per period Back orders Question 1 Prepare two aggregate production plans for: (a) Regular basis. Assume an output rate of 6000 units per period is used. (b) 400 units each for Overtime in periods 3, 4 and 5