Excel Online Activity: Aggregate Planning - Chase Production Consider the situation faced by Golden Beverages, a producer of two major products - Old Fashioned and Foamy Delite root beers. Golden Beverages operates as a continuous flow factory and must plan future production for a demand forecast that fluctuates quite a bit over the year, with seasonal peaks in the summer and winter holiday season. How should Golden Beverages plan its overall production for the next 12 months in the face of such fluctuating demand if the chase demand strategy is applied? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Questions 1. What is the average monthly demand? Round your answer to two decimal places. barrels 2. What is the maximum monthly ending inventory? Round your answer to the nearest whole number. barrels 3. What are the costs associated with chase demand production plan? Round your answers to the nearest cent. Lost Sales Production Cost Inventory Cost Undertime Month Overtime Cost Cost Rate Change Cost Cost Totals $ $ $ $ $ 4. What is the total cost Round your answer to the nearest cent. 5 1 Aggregate Planning: Chase Demand Strategy 3 Production cost ($/unit) 4 Inventory holding cost ($/unit) Lost sales cost (S/unit) 6 Overtime cost (S/unit) 7 Undertime cost ($/unit) 8 Rate change cost ($/unit) 9 Normal production rate (units) 10 Ending inventory (previous Dec. 11 Ending Inventory Lost Sales Lost Sales Month January February March April May $67.00 $1.10 $97.00 $6.40 $2.80 $5.00 2,000 1.200 Cumulative Cumulative Product Demand Demand Production Availability 1,500 900 1,900 2,700 3,000 3,400 3,500 3,400 2.400 1,300 2,200 2,700 Maximum Demand 1,500 900 1,900 2,700 3,000 Cumulative Demand #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A F #N/A #NIA #N/A Month January February March April May June July August September October November December Average June Cumulative Product Availability #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Maximum Production #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 3,400 3,500 Ending Inventory #N/A #N/A #N/A #N/A #N/A F #N/A #N/A #N/A #N/A #NJA #N/A #N/A #N/A #N/A #NA #N/A #N/A #NA #NA #N/A #NA #N/A #N/A #N/A #N/A July August September October November December Average 3,400 2,400 1,300 2,200 23 2,700 25 26 #N/A