Determine the total cost for this plan given the following forecast: Month 1 2 3 4 5
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Determine the total cost for this plan given the following forecast:
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 needed output to match the forecast. Unit costs are:
Regular output = $25 Overtime = $40 Subcontract = $60 Average Balance Inventory = $15
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