Prepared forecast of expected aggregate demand

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A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate will be used. Back orders are allowed, and they are charged at the rate of $6 per unit per month. Inventory holding costs are $2 per unit per month in average inventory. Show the aggregate plan and determine the cost of this plan if regular time cost is $10 per unit and beginning inventory is zero. Month Forecast 1 60 2 80 3 100 4 120 5 140 6 100.

Reference no: EM132185495

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