Eight Glasses A Day The EGAD Bottling Company has decided to introduce a new line of premium bottled water that will include several designer flavors. Marketing manager Georgianna is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months, as shown, Month May June July Aug Sep Oct Total Forecast 50 60 70 90 80 70 420 Production manager Mark Mercer, has developed the following information. (Note that one unit equals 100 bottles and there are 10,000 bottles per tank load). Regular production Cost $10 per unit Regular production capacity 60 units Overtime production cost $16 per unit Subcontracting cost $18 per unit Holding cost $2 per unit per month Back ordering cost $50 per month per unit Beginning inventory 0 units Among the strategies being considered are : 1. Level production supplemented by up to 10 tank loads a month from overtime 2. A combination of overtime, inventory and subcontracting. 3. Using overtime for up to 15 tank loads a month, along with inventory to handle variations. The objective is to choose the plan that has the lowest cost, which plan would you recommend? Presumably, information about the new line has been shared with supply chain partners. Explain what information should be shared with various partners and why sharing that information is important?