Given the Projected Demands for the Next Six Months, Prepare $$\begin{array} { l l } \text { Month } & \text { Forecast } \\\hline 1 & 180 \\2 & 170 \\3 & 140 \\4 & 150 \\5 & 130 \\6 & 150\end{array}$$

question 32

Essay

Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and back orders. The plan must wind up with no units in ending inventory in period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is $30 per unit, back order cost is $20 per unit, inventory holding cost is $5 per unit, regular time cost is $20 per unit, and beginning inventory is zero. $$\begin{array} { l l } \text { Month } & \text { Forecast } \\\hline 1 & 180 \\2 & 170 \\3 & 140 \\4 & 150 \\5 & 130 \\6 & 150\end{array}$$

Analyze how cost minimization relates to profit maximization in a firm.

Apply the principle of profit maximization by equating MRP and MRC to resource employment decisions.

Evaluate the impact of market competition on resource demand and wages.

Recognize the influence of consumer demand on professional earnings across different sports.

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Definitions:

Partnership Name

The official legal name under which a partnership business operates and is recognized.

Both Partners

In the context of business or law, it refers to the mutual and joint responsibility or involvement of two parties in an agreement or venture.

Individual Partner

A member of a partnership who contributes capital, participates in management, and is personally liable for partnership debts.

Dissolution

The process of formally ending or dismissing a legal entity or agreement, such as the dissolution of a corporation or marriage.