Question: Determine the total cost for the following Aggregate Plan given the forecast below. Use steady regular output of 300 units per month, use overtime as

Determine the total cost for the following Aggregate Plan given the forecast below. Use steady regular output of 300 units per month, use overtime as needed for up to 30 units per month, and use subcontracting to make up any needed output to match the forecast. Beginning inventory is equal to 0. Unit costs are: Regular Output = $30; Overtime = $45; Subcontracting = $60; Average Inventory = $10.

Month

1

2

3

4

5

6

Totals

Forecast

280

300

320

340

360

380

Reg. Output

300

300

300

300

300

300

Overtime

Subcontract

Output For.

Beg. Inv.

0

End. Inv.

Avg. Inv.

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