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follow. Planners for a firm are about to prepare the aggregate plan for one particular product that will cover the next six periods. Demand over

follow.
Planners for a firm are about to prepare the aggregate plan for one particular product that will cover the next six periods. Demand over those six periods isected to be:
250
,
200
,
400
,
500
,
550
,
and
300
for total demand of
2
,
200
.
'They have regular time capacity of
350
units per period and they plan to produce that many each period. They have unlimited overtime capacity. They will only produce in overtime to prevent a backorder
/
backlog
.
They realize that this plan could result in some inventory at the end of the sixth period. Beginning inventory is
2
Production costs per unit are as follows:
Regular time
Overtime
$
2.25
$
4.00
Inventory
$
1.25
Backorders
$
6.50
Prepare an aggregate plan and determine its cost. Use the plan you develop to answer the questions that follow.
What is the average inventory for period 2?

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