Question: I need help solving this problem Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth.

I need help solving this problem
I need help solving this problem Manager Chris Channing of Fabric Mills,
Inc., has developed the forecast shown in the table for bolts of
cloth. The figures are in hundreds of bolts. The department has a

Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are in hundreds of bolts. The department has a normal capacity of 275(00) bolts per month, except for the seventh month, when capacity will be 250(00) bolts. Normal output has a cost of $40 per hundred bolts. Workers can be assigned to other jobs if production is less than normal. The beginning inventory is zero bolts. Click here for the Excel Data File a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $60 per hundred bolts. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter " 0 " wherever required.) \begin{tabular}{|c|} \hline Output - Forecast \\ \hline Inventory \\ \hline Beginning \\ \hline Ending \\ \hline Average \\ \hline Backlog \\ \hline Costs: \\ \hline Output \\ \hline Regular \\ \hline Overtime \\ \hline Subcontract \\ \hline Inventory \\ \hline Backorder \\ \hline Total \\ \hline \end{tabular} b. Would the total cost be less with regular production with no overtime, but using a subcontractor to handle the excess above normal capacity at a cost of $50 per hundred bolts? Backlogs are not alliwed. The inventory carrying cost is $2 per hundred bolts. (Round your Average inventory values to 1 decimal place. Negative amounts should be indicated by a minus sign. Leave no cells blankbe certain to enter " 0 " wherever required.)

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