Consider the situation faced by Golden Beverages, a producer of two major products Old Fashioned and Foamy Delite root beers. Golden Beverages operates as a continuous flow factory and must plan future production for a demand forecast that fluctuates quite a bit over the year, with seasonal peaks in the summer and winter holiday season. How should Golden Beverages plan its overall production for the next 12 months in the face of such fluctuating demand if the level demand strategy is applied? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

Questions

1. What is the average monthly demand? Round your answer to two decimal places.

_________ barrels

2. What is the maximum monthly ending inventory? Round your answer to the nearest whole number.

_________ barrels

3. What are the costs associated with level demand production plan? Round your answers to the nearest dollar.

fill in blanks

	Production	Inventory	Lost Sales	Overtime	Undertime	Rate Change
Month	Cost	Cost	Cost	Cost	Cost	Cost
Totals	$	$	$	$	$	$

4. What is the total cost? Round your answer to the nearest dollar.

$_________