You would like to construct an aggregate production plan


You would like to construct an aggregate production plan for product X341 for the next four quarters. Cost of regular production = 80 $/u Cost of overtime production = 120 $/u Inventory holding cost = 12 $/u/qtr Cost of increasing production = 90 $/u Cost of decreasing production = 140 $/u Subcontracting cost = 135 $/u Stockout cost = 150 $/u Previous quarter's regular output = 800 u Beginning inventory level = 40 u The forecasted demand for the next four quarters are: 700, 800, 1000, and 1100 units. Suppose that you want to set the quarterly regular production constant at 750 units and to use overtime if necessary. You do not want to use any subcontract. Furthermore, you will keep inventory as low as possible. Stockouts are not allowed. I need a break down not just the numbers.

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Operation Management: You would like to construct an aggregate production plan
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