Problem 3 - Page 483, Q12 (use the excel template on Moodle to solve this problem)...

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Problem 3 - Page 483, Q12 (use the excel template on Moodle to solve this problem) (10 marks) 12. A spring-water bottling company has recently expanded into flavoured water. The marketing manager is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months (in truckloads): LO2 Month May Jun Jul Aug Sept Oct Total Forecast 50 60 70 90 80 70 420 The production manager has gathered the following information: Regular production cost Regular production capacity $1,000 per truckload Overtime production cost $1,500 per truckload Holding cost Backorder cost 60 truckloads per month using 20 employees $200 per truckload per month $5,000 per truckload per Beginning inventory month 0 The regular production can be supplemented by up to 30 truckloads a month from overtime. Determine the plan that has the lowest total cost. Hint: Use overtime in August-October. Problem 3 - Page 483, Q12 (use the excel template on Moodle to solve this problem) (10 marks) 12. A spring-water bottling company has recently expanded into flavoured water. The marketing manager is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months (in truckloads): LO2 Month May Jun Jul Aug Sept Oct Total Forecast 50 60 70 90 80 70 420 The production manager has gathered the following information: Regular production cost Regular production capacity $1,000 per truckload Overtime production cost $1,500 per truckload Holding cost Backorder cost 60 truckloads per month using 20 employees $200 per truckload per month $5,000 per truckload per Beginning inventory month 0 The regular production can be supplemented by up to 30 truckloads a month from overtime. Determine the plan that has the lowest total cost. Hint: Use overtime in August-October.