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Period Forecast 1 200 2 500 ...

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Accounting

Period Forecast
1 200
2 500
3 300
4 400
5 200
6

200

Regular time: $20 per unit (maximum of 280 units per period)

Overtime: $30 per unit (maximum of 40 units per period)

Subcontracting: Not available

Beginning inventory: None

Carrying cost: $10 per unit per period

Backorder cost: $50 per unit per period

What is the first period in which overtime should be scheduled in order to minimize total cost for the aggregate plan?

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