Osprey Machine Works Has the Following Demand Requirements and Other

Essay

Osprey Machine Works has the following demand requirements and other data for the upcoming four quarters.
$\begin{array}{|l|l|l|l|}\hline\text { Quarter } & \text { Demand } & \text { Previous quarter's output } & 2500 \text { units } \\\hline 1 & 2300 & \text { Beginning inventory } & 200 \text { units } \\\hline 2 & 2400 & \text { Stockout (backorder) cost } & \$ 50 \text { per unit } \\\hline 3 & 2600 & \text { Inventory holding cost } & \text { \$10 per unit at } \\&&&\text { end of quarter }\\\hline4 & 2100 & \text { Hiring workers } & \$ 4 \text { per unit } \\\hline & & \text { Laying off workers } & \text { \$8 per unit } \\\hline & & \text { Unit cost } & \text { \$30 per unit } \\\hline && \text { Overtime } & \text { \$10 extra per unit } \\\hline\end{array}$ What is the total cost of pursuing a level aggregate plan over the coming year?