GF Incorporated, a manufacturer of power systems, uses overtime, inventory and subcontracting to absorb fluctuations in demand.
Question:
Relevant cost data are as follows:
Regular production cost per unit .......... $20
Overtime production cost per unit ........ $25
Subcontracting cost per unit ........... $30
Inventory holding cost per unit per period ...... $ 3
Beginning inventory ............. 0
Design a production plan that will satisfy demand at minimumcost.
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Related Book For
Operations and Supply Chain Management
ISBN: 978-1118738542
8th edition
Authors: Roberta S. Russell, Bernard W. Taylor
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