Question

You would like to construct an aggregate production plan for product X341 for the next four quarters. Cost of regular production 100 $/u Cost of overtime production 150 $u Inventory holding cost 15 S/u/qtr Cost of increasing production 120 $/u Cost of decreasing production 160 $/u Subcontracting cost 170 $/u Stockout cost 180 $/u Previous quarter's regular output 1500 u Beginning inventory level-30 u The forecasted demand for the next four quarters are: 1000, 300, 600, and 900 units. Suppose that you want to use a chase strategy that increases and decreases production level to meet the quarter demand. You do not want to use any subcontract or overtime. Furthermore, you will keep inventory as low as possible. Stockouts are not allowed. You must perform the calculation and answer the questions shown below. NOTE: Do not use any comma in your answers. The regular production is decreased by The regular production is decreased by The regular production is increased by Total regular production is Total regular production cost is $ Total cost of increasing regular production is $ Total cost of decreasing regular production is $ Total cost of production is $ units in quarter 1. units in quarter 2 units in quarter 4 units