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Right now is August 1,2020. You would like to construct an aggregate production plan for product 127 for the next four quarters of 2021. Cost
Right now is August 1,2020. You would like to construct an aggregate production plan for product 127 for the next four quarters of 2021. Cost of regular production =65$/u Cost of overtime production =97$/u inventory holding cost =5$/u/qtr Cost of increasing regular production =80$/u Cost of decreasing regular production =90$/u The regular production in Quarter 4 of 2020=886u The inventory at the beginning of Quarter 1 of 2021 is estimated to be 87u The forecasted demand for the four quarters of 2021 are: 1,278,955,1,101, and 980 units. You want to use the chase production strategy without overtime production and keep inventory as low as possible. Stockouts (shortages) are not allowed. You must perform the calculation and answer the questions shown below. NOTE: Do not use any comma in your answers. The total cost of the chase production strategy is dollars
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