NowJuice, Inc. produces bottled pickle juice. A planner has developed an aggregate forecast for demand (in cases) for the next four months. Use the following information to develop an aggregate plan using the LEVEL strategy. Inventory holding cost is $1 per month per case and backlog cost is $5 per month per case. Beginning inventory is zero.MonthMayJuneJulyAugustForecast452520600719 Cost Per UnitMonthly CapacityRegular Production19.40400Overtime Production1.5 x Regular Prod Cost400What is the TOTAL cost of the LEVEL plan over the planning horizon?Correct Answer51,588.6CAN SOMEONE SHOW ME HOW THEY GOT THE ANSWER 51588.6

As per our calculation, this answer is not correct. we are solving it the correct way given,

Answered: NowJuice, Inc. produces bottled pickle…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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NowJuice, Inc. produces bottled pickle juice. A planner has developed an aggregate forecast for demand (in cases) for the next four months. Use the following information to develop an aggregate plan using the LEVEL strategy. Inventory holding cost is $1 per month per case and backlog cost is $5 per month per case. Beginning inventory is zero.