Question
what is the total cost for each of the following aggregate production plans using these unit costs regular output =$40.00 overtime=$50.00 subcontract =$60.00 inventory per
what is the total cost for each of the following aggregate production plans using these unit costs
regular output =$40.00
overtime=$50.00
subcontract =$60.00
inventory per month =$10
A)month jan feb march april may june
forecast 300 320 320 340 320 320
output
regular 300 300 300 300 300 300
overtime 20 20 20 20 20 20
subcontract 0 0 0 0 0 0
output-Forcast
Inventory
Beginning
Ending
Average
B) Month July August Sept Oct Nov Dec
Forecast 320 340 360 380 400 400
Ouput
Regular 300 300 300 300 300 300
Overtime 20 20 20 20 30 30
Subcontract 20 30 40 40 60 70
Ouput-Forecast
Inventory
Beginning
Ending
Average
C) Refer to Part B) after complaints from some workers about working overtime every month during the first half of the year, the manager is now considering adding some temporary workers for the second half of the year, which would increase regular ouput to a steady 350 units a month, not using any overtime, and using subcontracting to make up the shortage. Determine the total cost of this plan?
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