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A company's forecast of demand in shown in the following table. Regular production costs $136 per unit with a monthly capacity of 43 units. Subcontracting
A company's forecast of demand in shown in the following table. Regular production costs $136 per unit with a monthly capacity of 43 units. Subcontracting costs $273 per unit and has unlimited capacity. It costs $14 per unit per month to hold inventory and $30 per unit per month to run backlogs.
Period | 1 | 2 | 3 |
Forecast | 65 | 71 | 81 |
What is the total cost of a LEVEL aggregate plan?
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