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Create a Minimum Cost Chase Plan for the Forecast Shown

Question 27

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Create a minimum cost chase plan for the forecast shown in the table.There is no beginning inventory and regular production capacity is 350 units.Overtime costs $20 extra and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $15 per unit.Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory.There is room for only 100 units in inventory.What is the total plan cost?
Create a minimum cost chase plan for the forecast shown in the table.There is no beginning inventory and regular production capacity is 350 units.Overtime costs $20 extra and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $15 per unit.Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory.There is room for only 100 units in inventory.What is the total plan cost?

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