Please note the is one full question. Please answer all fill in the blanks and boxes below. Attached is the Diagram spreadsheet provided.

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 chase 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.

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 chase demand production plan? Round your answers to the nearest cent.

______ associated costs

	Production	Inventory	Lost Sales	Overtime	Undertime	Rate Change
Month	Cost	Cost	Cost	Cost	Cost	Cost
Totals	$	$	$	$	$	$

4. What is the total cost? Round your answer to the nearest cent.

$______

Aggregate Planning: Chase Demand 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.) $74.00 $1.60 $94.00 $6.20 $2.90 $4.80 2,200 1,000 Cumulative Cumulative Product Ending Demand Production Availability Inventory Lost Sales Ending Inventory Lost Sales Month January February March April May June July August September October November December Average Demand 1,500 1,000 1,900 2,800 3,100 3,500 3,600 3,500 2,500 1,300 2,300 2,800 Month January February March April May June July August September October November December Average Demand 1,500 1,000 1,900 2.800 3,100 3,500 3,600 3,500 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 Cumulative Product Production 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 #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 #N/A #N/A #N/A #N/A 2,500 1,300 2.300 2,800 Maximum #N/A Production Cost Inventory Lost Sales Cost Cost Overtime Undertime Rate Change Cost Cost Cost Overtime Cost Month January February March April May June July August September October November December Totals 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 Inventory Cost #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A N #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 #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 Rate Change 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 Total cost Total cost #N/A