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NowJuice, Inc. produces bottled pickle juice. A planner has developed an aggregate forecast for demand (in cases) for the next four months. Use the
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 729 691 585 448 Regular Production Overtime Production Cost Per Unit 14.01 1.5 x Regular Prod Cost What is the TOTAL cost of the LEVEL plan over the planning horizon? Monthly Capacity 400 400
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