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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 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 732 616 550 471

Cost Per Unit Monthly Capacity
Regular Production 15.70 400
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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