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A company's forecast of demand in shown in the following table. Regular production costs $148 per unit with a monthly capacity of 51 units. Subcontracting

A company's forecast of demand in shown in the following table. Regular production costs $148 per unit with a monthly capacity of 51 units. Subcontracting costs $281 per unit and has unlimited capacity. It costs $10.3 per unit per month to hold inventory and $39 per unit per month to run backlogs.

What is the total cost of holding inventory using a LEVEL aggregate plan?

Period 1 2 3
Forecast 66 76 89

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