A manager has prepared a forecast of expected aggregate demand for the next six months

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A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 100 units per month will be used. Back orders are allowed, and they are charged at the rate of $8 per unit per month. Inventory holding costs are $1 per unit per month in ending inventory. Determine the cost of this plan if regular time cost is $20 per unit and beginning inventory is zero.

   Month           Forecast
1                      80
2                   100
3                   120
4                   110
5                   100
6                      90