Question: You would like to construct an aggregate production plan for product X341 for the next four quarters. Cost of regular production = 60 $70 Cost

You would like to construct an aggregate

You would like to construct an aggregate

You would like to construct an aggregate production plan for product X341 for the next four quarters. Cost of regular production = 60 $70 Cost of overtime production = 90 $/u Inventory holding cost = 10 $/u/qtr Cost of increasing production = 70 / Cost of decreasing production = 120$/u Subcontracting cost = 115 $/u Stockout cost = 130$/u Previous quarter's regular output = 600 u Beginning inventory level = 90 U The forecasted demand for the next four quarters are: 600, 800, 600, and 900 units. Suppose that you want to set the quarterly regular production constant at 560 units and to use overtime if necessary. You do not want to use any subcontract. Furthermore, you will keep inventory as low as possible. Stockouts are not allowed. You must perform the calculation and answer the questions shown below. NOTE: Do not use any comma in your answers, The beginning inventory in quarter 2 is 50 units. The overtime production in quarter 4 is 0 X units. Total regular production is 2240 units. Total overtime production is 10 X units. Total regular production cost is $ 134400 Total cost of increasing regular production is 50 Total cost of decreasing regular production is $4800 Total cost of holding inventory is $500 Total cost of overtime production is 900 Total cost of production is 140600

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