02 3. Determine the total cost for the following plan given the following forecasts: Month 1...

Transcribed Image Text:

02 3. Determine the total cost for the following plan given the following forecasts: Month 1 2 3 4 5 6 Forecast 380 400 420 440 460 480 Use steady regular output of 400 units per month, use overtime as needed for up to 40 units per month, and use subcontracting to make up any shortage. Unit costs are: Regular output = $25 Overtime = $40 Subcontract = $60 Inventory per month = $15 02 3. Determine the total cost for the following plan given the following forecasts: Month 1 2 3 4 5 6 Forecast 380 400 420 440 460 480 Use steady regular output of 400 units per month, use overtime as needed for up to 40 units per month, and use subcontracting to make up any shortage. Unit costs are: Regular output = $25 Overtime = $40 Subcontract = $60 Inventory per month = $15