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.
$\begin{array}{|l|l|l|l|}\hline\text { Quarter}& \text { Demand }& \text { Previous quarter's output } & 2500 \text { units } \\\hline 1&2300&\text { Beginning inventory } &20 0 \text { units } \\\hline2&2400&\text { Stockout cost } & \$ 50 \text { per unit } \\\hline3&2600 &\text { Iniventory holding cost } & \$ 10 \text { per unit at end of quarter } \\\hline4&2100 &\text { Hiring workers } & \$4 \text { per unit } \\\hline &&\text { Laying off workers } & \$ 8 \text { per unit } \\\hline&& \text {Unit cost} & \$ 30 \text { per unit } \\\hline&& \text { Overtime } & \$ 10 \text { per unit }\\\hline\end{array}$


What is the total cost of pursuing a level aggregate plan over the coming year?