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The Bottling Company has recently expanded its bottles spring water operations to include several new flavors. Marketing manager Georgianna Mercer is predicting an upturn in

The Bottling Company has recently expanded its bottles spring water operations to include several new flavors. Marketing manager Georgianna Mercer 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 forecast for the next six months, as shown in the following table:

Month

Jan

Feb

Mac

Apr

May

Jun

Total

Forecast

50

60

70

90

80

70

420

Other information been provided by the production manager as follow:

Regular production cost $10 per unit

Regular production capacity 60 units

Overtime production cost $16 per unit

Subcontracting cost $18 per unit

Holding cost $2 per unit per month

Back-ordering cost $50 per month per unit

Beginning inventory 0 units

Develop 3 aggregate plans. Determine which plan gives a lowest total cost.

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