Caltex uses overtime, inventory, and subcontracting to absorb fluctuations in demand. An annual production plan is devised
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Regular production cost per unit .........$10
Overtime production cost per unit .......$15
Subcontracting cost per unit ..........$20
Inventory holding cost per unit per period ....$2
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Period of Production Beg Inventory 1 Regular Overtime Subk 2 Regular Overtime Su...View the full answer
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Related Book For 
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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