Question
NowJuice, Inc. produces bottled pickle juice. A planner has developed an aggregate forecast for demand (in cases) for the next four months. Use the following
NowJuice, Inc. produces bottled pickle juice. A planner has developed an aggregate forecast for demand (in cases) for the next four months. Use the following information to develop an aggregate plan using the LEVEL strategy. Inventory holding cost is $1 per month per case and backlog cost is $5 per month per case. Beginning inventory is zero.
| Month | May | June | July | August |
| Forecast | 747 | 622 | 566 | 445 |
| Cost Per Unit | Monthly Capacity | |
| Regular Production | 13.87 | 400 |
| Overtime Production | 1.5 X Regular Prod Cost | 400 |
What is the TOTAL cost of the LEVEL plan over the planning horizon?
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The Fundamentals Of Fashion Management
Authors: Susan Dillon
2nd Edition
1474271219, 978-1474271219
