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 1,2020.
You would like to construct an aggregate production plan for product PX27 for the four quarters of 2021.
Cost of regular production =65 $/unit
Cost of overtime production =97 $/u
Inventory holding cost =5 $/u/qtr
Cost of increasing regular production =80 $/u
Cost of decreasing regular production =90 $/u
The regular production in Quarter 4 of 2020=901 u
The inventory a the beginning of Quarter 1 of 2021 is estimated to be 80 U
The forecasted demand for the four quarters of 2021 are: 1,119,904,1196, and 823 units.
You want to use the chase production strategy with overtime production.
Furthermore, you will keep inventory as low as possible but stockouts (shortages) must
be avoided.
the total cost of the chase production strategy is ________ dollars

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