SummerFun Inc. produces a variety of recreation and leisure products. The produ

SummerFun
Inc. produces a variety of recreation and leisure products. The production
manager has developed an aggregate forecast:Use the following information to
develop aggregate plans.Develop an aggregate plan using each
of the following guidelines and compute the total cost for each plan. Which
plan has the lowest total cost?a. Use
regular production. Supplement using inventory overtime and subcontracting as
needed. No backlogs allowed.b. Use
a level strategy. Use a combination of backlogs subcontracting and inventory
to handle variations in demand. Wormwood
Ltd. produces a variety of furniture products. The planning committee wants to
prepare an aggregate plan for the next six months using the following
information:Subcontracting can handle a maximum
of 10 units per month. Beginning inventory is zero. Develop a plan that
minimizes total cost. No back orders are allowed.
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