PeriodForecast120022003300440055006200Total 1800Cost Output Regular time=$2 per

PeriodForecast120022003300440055006200Total 1800Cost Output Regular time=$2 per skateboard
Aggregate Planning 4-2
Period
Forecast
1
200
2
200
3
300
4
400
5
500
6
200
Total
1800
Cost
Output
Regular time=$2 per skateboard
Overtime=$3 per skateboard
Subcontract= $6 per skateboard
Inventory = $1 per skateboard per period on average inventory
Back Orders= $5 per skateboard per period
The president of the firm has decided to shut down the plant for vacation and installation of new equipment in period 4. After installation the cost per unit will remain the same but the output rate for regular time will be 450. Regular output is the same as above for Periods 12 and 3; 0 for period 4; and 450 for each of the remaining periods. Note though that the forecast of 400 units in period 4 must be dealt with. Prepare the aggregate plan and compute its total cost.
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