Question: You would like to construct an aggregate production plan for product P2X27 for the next four quarters. Cost of regular production = 70 $/u Cost
You would like to construct an aggregate production plan for product P2X27 for the next four quarters. Cost of regular production = 70 $/u Cost of overtime production = 95 $/u Inventory holding cost = 7 $/u/qtr Cost of increasing regular production = 80 $/u Cost of decreasing regular production = 95 $/u Previous quarter's regular production = 2500 u Beginning inventory level = 200 u The forecasted demand for the next four quarters are: 1600, 1300, 1700, and 1450 units. You want to use the chase production strategy without overtime production. 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 total cost of the production plan is ______________ dollars.
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