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3- Given the projected demands for the next six months, prepare an aggregate plan (LEVEL STRATEGY) that uses inventory, regular time and overtime, and backorders

3- Given the projected demands for the next six months, prepare an aggregate plan (LEVEL STRATEGY) that uses inventory, regular time and overtime, and backorders. The plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is $30 per unit, backorder cost is $20 per unit, inventory holding cost is $5 per unit, regular time cost of $20 per unit, and beginning inventory is zero. (25 points)

Output Cost : Regular : 20$ / Unit, Overtime: 30$/unit,

Inventory Cost: 5 $ / Unit per month on average inventory.

Backorder Cost: 20 $ / unit per month.

  • Regular production capacity is 150 unit/month. OverTime Capacity 20 Unit/Month
  • Develop an APP using a LEVEL production strategy using normal output,overtime,inv and backorder (is allowed) . Show yor plan in the following table. CALCULATE TOTAL COST
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