Given the Projected Demands for the Next Six Months,prepare an Aggregate

question 12

Essay

Given the projected demands for the next six months,prepare an aggregate production plan that uses inventory,regular time and overtime,and backorders.Regular time is 150 units per month.Overtime is a maximum of 20 units per month.Overtime cost is $30 per unit,backorder cost is $20 per unit,inventory holding cost is $5 per unit,regular time cost of $20 per unit,and beginning inventory is zero.
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Definitions:

Wheat

Wheat is a cereal grain, originally from the Levant region of the Near East but now cultivated worldwide, a staple food used to make flour for breads, pasta, and other foods.

Opportunity Cost

The cost of a missed opportunity; the value of the best alternative that one gives up when making a decision.

Frozen Foods

Food products that have been preserved through freezing to extend shelf life and retain nutritional value.

Labor Force

The aggregate sum of individuals working or actively looking for work in an economic system.