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?
Definitions:
Critical Value
A threshold value that is compared with the test statistic to determine whether the null hypothesis should be rejected in hypothesis testing.
True Average Weight
The actual mean weight calculated across a specified population or sample.
Sample Size
The number of observations or data points collected from a population to form a sample, used in statistical analysis.
Critical Value
A threshold value that defines the boundary of the acceptance region in hypothesis testing, used to make a decision regarding the null hypothesis.
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