Construct an aggregate production plan for product

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Reference no: EM132097953

You would like to construct an aggregate production plan for product X341 for the next four quarters.

Cost of regular production = 80 $/u

Cost of overtime production = 120 $/u

Inventory holding cost = 12 $/u/qtr

Cost of increasing production = 90 $/u

Cost of decreasing production = 140 $/u

Subcontracting cost = 135 $/u

Stockout cost = 150 $/u

Previous quarter's regular output = 900 u

Beginning inventory level = 40 u

The forecasted demand for the next four quarters are: 1000, 500, 400, and 800 units.

Suppose that you want to use a chase strategy that increases and decreases production level to meet the quarter demand. You do not want to use any subcontract or overtime. Furthermore, you will keep inventory as low as possible.

Stockouts are not allowed. You must perform the calculation and answer the questions shown below.

NOTE: Do not use any comma in your answers.

The regular production is decreased by Answer units in quarter 1.

The regular production is decreased by Answer units in quarter 2.

The regular production is increased by Answer units in quarter 4.

Total regular production is Answer units.

Total regular production cost is $ Answer

Total cost of increasing regular production is $ Answer

Total cost of decreasing regular production is $ Answer

Total cost of production is $

Reference no: EM132097953

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