Prepare an aggregate plan that uses inventory

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Reference no: EM13725324

Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and backorders. Regular time is 150 units per month. Overtime is a maximum of 20 units per month. Overtime cost is $30 per unit, backorder cost is $20 per unit, inventory holding cost is $5 per unit, regular time cost of $20 per unit, and beginning inventory is zero.

Month Forecast

1 180

2 170

3 140

4 150

5 130

6 150

Reference no: EM13725324

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