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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 617 431 716 536 Cost Per Unit 19.9 Monthly Capacity 400 Regular Production Overtime Production 1.5 x Regular Prod Cost 400 What is the cost of backlogs over the planning horizon using the LEVEL plan
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