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Business, 28.05.2020 22:03 amendes11

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 of 100 units per month will be used. Backorders are allowed, and they are charged at the rate of $10 per unit per month. Inventory holding costs are $2 per unit per month. Determine the cost of this plan if regular time cost is $20 per unit and beginning inventory is 50. The forecast for the next six months is as follows: Month 1: 110; Month 2: 200; Month 3: 90; Month 4: 50; Month 5: 90; Month 6: 106 What are the total costs of the sixth month plan?

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