Question: Answer questions 4-5 based on the following information. Regular production capacity is 40 units per period, and overtime production capacity is 10 units per period.

Answer questions 4-5 based on the followingAnswer questions 4-5 based on the following

Answer questions 4-5 based on the following information. Regular production capacity is 40 units per period, and overtime production capacity is 10 units per period. Assume that subcontracting is not available. Given the following data, develop an aggregate plan using the level strategy that achieves the minimum total cost. One can use overtime, inventory, together with regular production to fulfill the demand (not necessarily all of them). The beginning inventory for the first period is zero. Backlog (backorder) is NOT allowed. The ending inventory for the last period should be zero. Demand forecasts are 40 for the first month, 60 for the second month, and 50 for the third month. Unit costs are $5/unit for regular production and $10/unit for overtime production. Inventory cost (based on average inventory) is $1/unit/month. Question 4 1 pts Based on the level strategy, what should be the ending inventory for the first month (month 1)? O 10 oo 0 20 None of the answers is correct Question 5 1 pts Based on the level strategy, what is the total inventory cost for all three months (based on the total average inventory)? O $10 O None of the answers is correct O $5 0 $0

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