2) SummerFun, Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast: Month Forecast Mar Apr 50 44 Regular capacity Overtime capacity May 55 Subcontracting cost Subcontracting capacity Holding cost Jun 60 Use the following information to develop aggregate plans. Regular production cost $80 per unit Overtime production cost $120 per unit Jul 50 40 units per month 8 units per month $140 per unit 12 units per month $10 per unit per month Aug Sep 40 51 Backorder cost Beginning inventory $20 per unit 0 units Total 350 Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Hint: You will need extra output in April and August to accommodate demand in the fol- lowing months. a. Use regular production. Supplement using inventory, overtime, and subcontracting as needed. No backlogs allowed. b. Use a level strategy. Use a combination of backlogs, subcontracting, and inventory to handle variations in demand. There should not be a backlog in the final period.

2) SummerFun, Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast: Use the following information to develop aggregate plans. Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Hint: You will need extra output in April and August to accommodate demand in the following months. a. Use regular production. Supplement using inventory, overtime, and subcontracting as needed. No backlogs allowed. b. Use a level strategy. Use a combination of backlogs, subcontracting, and inventory to handle variations in demand. There should not be a backlog in the final period