A Manager Has Prepared a Forecast of Expected Aggregate Demand

question 28

Essay

A manager has prepared a forecast of expected aggregate demand for the next six months.Develop an aggregate plan to meet this demand given this additional information: A level production rate of 100 units per month will be used.Backorders are allowed,and they are charged at the rate of $8 per unit per month.Inventory holding costs,using average monthly inventory levels,are $1 per unit per month.Determine the cost of this plan if regular time cost is $20 per unit and beginning inventory is zero.
$$\begin{array} { | c | r | } \hline \underline{\text { Month }} &\underline{ \text { Forecast }} \\\hline 1 & 80 \\\hline 2 & 100 \\\hline 3 & 120 \\\hline 4 & 110 \\\hline 5 & 100 \\\hline 6 & 90 \\\hline\end{array}$$

---

Definitions:

Excessive Breathing

Breathing at an abnormally rapid rate, leading to decreased levels of carbon dioxide in the blood.

Hyperpnea

Increased depth and rate of breathing, usually in response to physical activity or a specific physiological demand.

Cricoid Cartilage

A ring-shaped cartilage found at the base of the larynx (voice box) and is important for maintaining an open airway.

Largest Cartilage

Refers to the thyroid cartilage, the largest cartilage in the larynx, which plays a crucial role in voice production.