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 Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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