Question: Rahmans MFG. has to develop an aggregate plan for the following demand forecast for the next 6 months : Month 1 Month 2 Month 3

Rahmans MFG. has to develop an aggregate plan for the following demand forecast for the next 6 months :

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

1500 1000 1300 2000 900 1100

What is the total cost for the proposed level capacity plan, given that it costs $1.50 to hold one unit in inventory for one month, and the cost of production per unit is $150? (back ordering not allowed)

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