Question: PLEASE SHOW ALL STEPS FOR THE QUESTION TO BE WORTH ANY MARKS. WRITE CLEAR!!!!!!! A small company produces whisky. The sales person has developed the

PLEASE SHOW ALL STEPS FOR THE QUESTION TO BE WORTH ANY MARKS. WRITE CLEAR!!!!!!!

PLEASE SHOW ALL STEPS FOR THE QUESTION TO BE WORTH ANY MARKS.

A small company produces whisky. The sales person has developed the following aggregate forecasts for demand (in cases) for the next six months. (LO2) Use the following information: Regular labour cost $20 per case Regular labour capacity 5,000 cases per month using 50 workers Overtime labour cost $30 per case Part time labour cost $40 per case Holding cost $2 per case per month Backorder cost $10 per case per month Beginning inventory 0 Develop the minimum cost aggregate production plan using a level output/workforce plan, supplemented with each of the following variables, and compute the total cost for each plan Which plan has the lower total cost? a. Use overtime (up to 1,000 cases per month). b. Use a combination of overtime (500 cases per month maximum) and part-time labour (500 cases per month maximum)

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