3. The S&OP team at Kansas Furniture, has received the following estimates of demand requirements: July Aug. Sept. Oct. Nov. Dec. 1,800 1,200 1,400 1,800 1,000 1,600 Assume regular-time production cost of $50 per unit, inventory carrying costs of $25 per unit per month, and 100 unit beginning inventory at the beginning of July. Create an aggregate plan that would produce at a steady rate of 1,300 units per month and subcontract additional units at a $60 per unit premium cost. What is the cost of this plan?

Demand Beginning Inventory Regular Time Production Subcontract Ending Inventory July 1800 Aug. 1200 Sept. 1400 Oct. 1800 Nov. 1000 Dec. 1600

Total Regular Time Production Cost = ____________________________________ Subcontract Cost = ___________________________________ Inventory Cost = ________________________________________ Total Cost = __________________________________________