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All Seasons produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast:

All Seasons produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast:
Month Mar Apr May Jun Jul Aug Sep Total
Forecast 50 44 55 60 50 40 51 350

The following information is available based on past performance:
Regular production cost $80 per unit Regular capacity 40 units/month
Overtime production cost $120 per unit Overtime capacity 8 units/month
Subcontracting production cost $140 per unit Subcontracting capacity 12 units/month
Holding cost $10 per unit/ month
Backorder cost $20 per unit/ month

Develop minimum cost aggregate plan and compute the total cost of the plan. Use regular production, inventory, overtime and subcontracting as needed. No backlog is allowed. The beginning inventory is zero. Use the following blank tables as needed.

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