Excel Online Activity: Aggregate Planning - Level 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 level 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 level demand production plan? Round your answers to the nearest dollar. Lost Sales Overtime Undertime Production Cost Inventory Cost Rate Change Cost Cost Cost Cost Month Totals 2 $ $ $ $ $ 4. What is the total cost? Round your answer to the nearest dollar. $ Aggregate Planning: Level Production Strategy Production cost ($/unit) Inventory holding cost ($/unit) Lost sales cost ($/unit) Overtime cost ($/unit) Undertime cost ($/unit) Rate change cost ($/unit) Normal production rate (units) Ending inventory (previous Dec.) $67.00 $1.20 $100.00 $6.60 $3.40 $4.50 2,100 800 Formulas Cumulative Demand Cumulative Product Ending Production Availability Inventory Lost Sales Ending Inventory Lost Sales #N/A #N/A #N/A #N/A Month January February March April May June July August September October November December Average Demand 1,300 800 1,700 2,500 2,800 3,100 3,300 3,100 2,200 1,300 2,200 2,500 Month January February March April May June July August September October November December Average Demand 1,300 800 1,700 2,500 2,800 3,100 3,300 3,100 2,200 1,300 2,200 2,500 #N/A Cumulative Demand #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 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 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 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #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 Cost Inventory Inventory Cost Lost Sales Cost Overtime Undertime Rate Change Cost Cost Cost Overtime Cost Cost Rate Change Cost #N/A #N/A #N/A Month January February March April May June July August September October November December Totals #N/A Month January February March April May June July August September October November December Totals Production Cost #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Lost Sales Cost #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Undertime Cost #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Total cost Total cost #N/A