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SummerFun, Inc.. produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast Month Forecast Mar Apr May Junt Jul
SummerFun, Inc.. produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast Month Forecast Mar Apr May Junt Jul Aug Sep Total 50 44 55 60 50 40 51 350 Use the following Information to develop aggregate plans Regular production cost Overtime production cost Regular capacity Overtime capacity Subcontracting cost Subcontracting capacity Holding cost $ 80 per unit $120 per unit 40 units per month 8 units per month $140 per unit 12 units per month $10 per unit per month Click here for the Excel Data File Backorder cost Beginning inventory $20 per unit units Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Hint: You will need extra output in April and August to accommodate demand in the following months a. Use regular production. Supplement using inventory, overtime, and subcontracting as needed. No backlogs allowed. (Round your Average values to 1 decimal place. Negative amounts should be indicated by a minus sign. Leave no cells blank-be certain to enter "O" wherever required.) Period Forecast Output Regular Overtime Subcontract Output Forecast Inventory Beginning Ending Average Backlog Costs) Regular Overtime Subcontract Inventory Total Mar Apr May Jun Aug Sep Total 50 44 55 00 50 40 51 350 Pray 2 of
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