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August 1 , 2 0 2 0 . You would like to construct an aggregate production plan for product PX 2 7 for the four
August You would like to construct an aggregate production plan for product PX for the four quarters of
Cost of regular production
Cost of overtime production
Inventory holding cost
Cost of increasing regular production
Cost of decreasing regular production
The regular production in Quarter of is
The inventory a the beginning of Quarter of is estimated to be
The forecasted demand for the four quarters of are: and units.
You want to use the level production strategy with overtime production.
Furthermore, you will keep inventory as low as possible but stockouts shortages must be avoided.
Suppose you keep the quarterly regular production constant at units and add overtime production if necessary.
You must perform the needed calculation and answer the question shown below.
NOTE: Do not use any comma in your answers.
The total cost of overtime production is dollars.
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