Question: Given the projected demands for the next six months, prepare a Level Capacity strategy aggregate plan that uses inventory, regular time and overtime, and back
Given the projected demands for the next six months, prepare a Level Capacity strategy aggregate plan that uses inventory, regular time and overtime, and back orders. The plan must wind up with no units in ending inventory in period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is $30 per unit, back order cost is $40 per unit, inventory holding cost is $5 per unit, regular time cost is $20 per unit, and beginning inventory is zero.
What is the total cost of this plan?
Group of answer choices
$18,100
$18,900
$18,500
$18,800
$19,000
Month Forecast 180 170 140 150 130 150Step by Step Solution
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