Question: Please Check the work and correct if aything is wrong. Thanks Please Check the work Please Show all Work so I can better understand Decide
Please Check the work and correct if aything is wrong. Thanks



Please Check the work
Please Show all Work so I can better understand Decide for the total cost for the following Aggregate Plan given the following forecast below. Utilize a steady regular output of 300 units per month. Utilize overtime as needed for up to 30 units per month. Utilize subcontracting to make up any needed output to match the forecast. Beginning inventory is equal to 0. Unit costs: Regular o Output = $30 o Overtime = $45 o Subcontracting = $60 o Average Inventory = $10 Totals 1 280 300 2 300 300 3 320 300 4 340 300 5 360 300 6 380 300 Month 1 Forecast T Reg. Output Overtime Subcontract Output For.. Beg. Inv. 1 End. Inv. Avg. Inv. Please Show all Work so I can better understand Overtime Units = Forecast - Regular Output - Beginning Inventory (Maximum Value for overtime = 30) Subcontract Units = Forecast - Regular Output - Beginning Inventory - Overtime Output Forecast = Regular Output + Overtime + Subcontract Beginning Inventory = End Inventory of Last month End Inventory = Output Forecast + Beginning Inventory - Forecast Avg Inventory = (Beginning Inv + End Inv)/2 Cost of Regular output = Total Regular output * 30 Cost of Overtime production = Total Overtime production * 45 Cost of subcontracting = Total Subcontract units *60 Cost of inventory carrying = Total Avg Inv*10 Total Cost = Cost of Regular output + Cost of Overtime production + Cost of subcontracting + Cost of inventory carrying 1 . . . 280 300 0 1 Month . 2 Forecast 3 Regular Output 4 Overtime 5 Sucontract 6 Outpur For. 7 Beg. Inventory 8 End Inventory 9 Avg Inventory 2 300 300 0 0 300 90 0 3 320 300 0 0 300 20 0 10 0 20 I 4 . 5 . 6 I Total 340 360 380 1980 300 300 300 1800 30 30 30 10 30 50 90 340 380 1980 0 0 0 40 0 0 0 40 0 0 40 Cost of Regular Output $54,000.00 Cost of overtime production $ 4,050.00 Cost of Subcontracting $5,400.00 Cost of Inventory Carrying $ 400.00 $63,850.00 20 10 20 20 Total Cost 6 4 H 1 Month 1 Total 2 Forecast 280 300 320 340 360 380 =SUM(B2:G2) 3 Regular Output 300 300 300 300 300 300 =SUM(B3:G3) 4 Overtime =MIN(30, MAX(0,C2-C7-C3)) =MIN(30, MAX(0,D2-07-D3)) =MIN(30, MAX(0, E2-E7-E3)) =MIN(30, MAX(0,F2-F7-F3)) =MIN(30, MAX(0, G2-G7-G3)) =SUM(B4:G4) 5 Sucontract O =MAX(0,C2-C3-C4-C7) =MAX(0, D2-D3-D4-D7) =MAX(0, E2-E3-E4-E7) =MAX(O, F2-F3-F4-F7) =MAX(0, G2-G3-G4-G7) =SUM(B5:45) 6 Outpur For. =B3+B4+B5 =C3+04+C5 =D3+D4+05 =E3+E4+E5 =F3+F4+F5 =G3+G4+G5 =SUM(B6:56) 7 Beg. Inventory lo =B8 =C8 =D8 =SUM(B7:67) 8 End Inventory =B6+B7-B2 =C6+C7-C2 =D6+D7-D2 =E6+E7-E2 =F6+F7-F2 =G6+G7-G2 I=SUM(B8:68) 9 Avg Inventory 1=(B7+B8)/2 =(C7+C8)/2 =(D7+D8)/2 =(E7+E8)/2 =(F7+F8)/2 =(G7+G8)/2 =SUM(B9:69) Cost of Regular Output =H3*30 Cost of overtime production =H4*45 Cost of Subcontracting =H5*60 Cost of Inventory Carrying =H9*10 Total Cost =SUM(H10:H13) =E8 =F8Step by Step Solution
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