Question: Develop an agregate plan using each of the following guideline. Compute the total cost for each plan. 1) use level production. Supplement using overtime as

Develop an agregate plan using each of the

Develop an agregate plan using each of the following guideline. Compute the total cost for each plan.

1) use level production. Supplement using overtime as needed.

2) develop a regular production plan by using a combination of inventory, overtime (1000 cases per period maximum), and subcontracting to handle variations in demand.

3) choose the best plan to be selected and justify your answer

Nowjuice Inc., produces bottled pickle juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months. Month May June July August September October Forecast 4,000 4,800 5,600 7,200 6,400 5,000 Use the following information to develop aggregate plans: Regular production cost : RM10 per case Regular production capacity : 5000 cases Overtime production cost : RM16 per case Subcontracting cost : RM20 per case Holding cost : RM1 per case per month Beginning inventory : 0

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