Question: Use the given information and the provided table below to answer the following questions. Period Forecast 1 220 2 180 3 345 4 400 5

Use the given information and the provided table below to answer the following questions.

Period

Forecast

1

220

2

180

3

345

4

400

5

205

Regular time:

$30 per unit (230 units per period maximum)

Overtime:

$45 per unit (40 units per period maximum)

Subcontracting:

Not available

Temp Workers

$50 per unit (40 units per month maximum)

Beginning Inv.:

45

Holding cost:

$2 per unit per period

Backorder cost:

$5 per unit per period

Develop an aggregate plan that results in the minimum total cost. Note:

  • There is no hiring/firing in this problem
  • No on hand inventory or backorders at the end of period 5

1

2

3

4

5

Total

Forecast

220

180

345

400

205

1,405

Output

Regular

230

230

230

230

230

1,150

Overtime

0

Temporary

0

Output-Forecast

10

Inventory

Beginning

45

Ending

0

Average

Backorder

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