Question: a Given the following forecast and steady regular output of

a. Given the following forecast and steady regular output of 550 every month, what total cost would result if overtime is limited to a maximum of 40 units a month, and subcontracting is limited to a maximum of 10 units a month? Unit costs are:
Regular output $ 20
Overtime $ 30
Subcontract $ 25
Average Inventory $ 10
Backlog $ 18


b. Suppose now that backlogs are not allowed. Modify your plan from part a to accommodate that new condition as economically as possible. The limits on overtime and subcontracting remain the same.
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  • CreatedDecember 30, 2014
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