Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end-items use the same...
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Accounting
Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both enditems use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy each quarter and the information that follows. What is the total cost? Assume lost sales are backordered and filled during the next quarter. Summarize the plan, its costs, and consequences using manual computations. Initial Inventory Level units Regular Time $ Lost Sales CostUnit $ Inventory Carry Cost per unit $ Quarter One Two Three Four Total Beginning Inventory Jet Ski Engine Snowmobile Engine Total Engines Average Demand RateQuarter Units Regular Time Production Rate Units
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