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please, look at the question first! A manager has projected demand for the next six months (below). Given this information, prepare a LEVEL aggregate plan
please, look at the question first!
A manager has projected demand for the next six months (below). Given this information, prepare a LEVEL aggregate plan for production. Assume maximum regular time production is 325 units per month. Overtime is limited to 75 units per month. The limit for subcontracting is 400 per month. The company has a zero beginning inventory and cannot have ending inventory or a backlog at the end of the 6th period. Unit costs are as noted below. Regular Time Cost: $18/unit Overtime Cost: $27/unit Subcontracting Cost: $50/unit Inventory Holding Cost: $5/unit Backorder Cost: $60/unit Projected Demand: Forecast 480 Month 1 2 3 4 5 6 460 360 340 450 460 Period 1 2 3 4 5 6 TOTAL FORECAST OUTPUT Regular Overtime Subcontract Output - Forecast INVENTORY 0 Beginning 0 Ending Average BACKORDERS COSTS Output Regular Overtime Subcontract Inventory Backorders TOTAL 1. What is the total cost for this Aggregate Planning scenario? (6 points) 2. How many periods will utilize subcontracting? (1 points) 3. What is the total backorder cost for this Aggregate Planning scenario? (1 points) 4. In one brief statement, what would you suggest this company do to improve customer satisfaction? If you write more than 1 sentence, you will not receive ANY points for this question. (2 pts)Step by Step Solution
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