Question 3Regular output capacity is 130 units per month. Regular cost per unit = K600. Overtime cost per unitK900. Beginning inventory is 0 units. We have the forecast of engine demand shown below:a) Develop a chase plan that matches the forecast. Calculate the cost of the plan.b) Develop a level plan that uses inventory to absorb fluctuations. Compare the costs of the levelplan to the costs of the chase plan from Part (a). Inventory carrying cost per unit per month = 20.Backlog cost per unit per month = K900. There should be no backlog in the final month.MonthForecast112023135 1404120End of assignment 1512561257140=8135Total1,040

Given: Output capacity = 130 Units per month Regular cost per unit = K600 Overtime cost per unit =…

Answered: Regular output capacity is 130 units…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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