Planner has developed an aggregate forecast for demand

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Reference no: EM131143517

Parts Inc., produces cooking oil. a planner has developed an aggregate forecast for demand (in cases) for the next four months months march 1200 april 9800 may 5200 june 18000.

regular production cost: $14.75 / case

regular production capactity: 12500 cases

overtime production cost: $32.50 / case

subcontracting cost: $80/case

holding cost: $5 / case/ month

Beginning inventory: 1,000 cases

Develop an aggregate plan using a level production to compute the total cost for the plan. supplement using overtime as needed. note: backlogs are not allowed.

Reference no: EM131143517

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