Given the projected demands for the next six months, prepare aggregate plan must wind up with no units in ending inventory in Period 6. The regular time capacity is 150 units per month. Overtime cost is $20 per unit, backorder cost is $30 per unit, inventory holding cost is $10 per unit based on maximum, the subcontracting cost is $40 per unit, the regular time cost of $20 per unit, and beginning inventory is 10.

Month	1	2	3	4	5	6
Forecast	150	170	140	160	130	160

a. Prepare an aggregate plan with inventory and backlog allowed. Overtime and subcontracting are not allowed. b. Prepare an aggregate plan if the management decided to switch to a chase strategy. They only allow backlog if absolutely needed. The regular production capacity is now 160.