Right now is July 1, 2021. You would like to construct an aggregate production plan for...

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Right now is July 1, 2021. You would like to construct an aggregate production plan for product PX34 for the four quarters of 2022. Cost of regular production = 69 $/u. Cost of overtime production = 99 $/u. Inventory holding cost = 1.3 $/u/qtr. Cost of increasing regular production = Cost of decreasing regular production = 40 $/u. 50 $/u. The regular production in Quarter 4 of 2021 is 634 u. The inventory a the beginning of Quarter 1 of 2022 is estimated to be 44 u. The forecasted demand for the four quarters of 2022 are: 740, 574, 515, and 570 units. You want to use the level production strategy with overtime production. Furthermore, you will keep inventory as low as possible but shortage must be avoided. Suppose you keep the quarterly regular production constant at 689 units and add overtime production if necessary. You must perform the needed calculation and answer the question shown below. The total cost of holding inventory will be ? dollars. Right now is July 1, 2021. You would like to construct an aggregate production plan for product PX34 for the four quarters of 2022. Cost of regular production = 69 $/u. Cost of overtime production = 99 $/u. Inventory holding cost = 1.3 $/u/qtr. Cost of increasing regular production = Cost of decreasing regular production = 40 $/u. 50 $/u. The regular production in Quarter 4 of 2021 is 634 u. The inventory a the beginning of Quarter 1 of 2022 is estimated to be 44 u. The forecasted demand for the four quarters of 2022 are: 740, 574, 515, and 570 units. You want to use the level production strategy with overtime production. Furthermore, you will keep inventory as low as possible but shortage must be avoided. Suppose you keep the quarterly regular production constant at 689 units and add overtime production if necessary. You must perform the needed calculation and answer the question shown below. The total cost of holding inventory will be ? dollars.

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To calculate the total cost of holding inventory we need to consider the inventory levels at the beg... View the full answer