Question: Right now is August 1 , 2 0 2 0 . You would like to construct an aggregate production plan for product PX 2 7
Right now is August You would like to construct an aggregate production plan for product PX for the four quarters of
Cost of regular production $u
Cost of overtime production $u
Inventory holding cost $uqtr
Cost of increasing regular production $u
Cost of decreasing regular production $u
The regular production in Quarter of is u
The inventory a the beginning of Quarter of is estimated to be u
The forecasted demand for the four quarters of are: and units.
You want to use the level production strategy with overtime production.
Furthermore, you will keep inventory as low as possible but stockouts shortages must be avoided.
Suppose you keep the quarterly regular production constant at units and add overtime production if necessary.
You must perform the needed calculation and answer the question shown below.
NOTE: Do not use any comma in your answers.
The total cost of the level production strategy is dollars.
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