The Holloway Calendar Company produces a variety of printed calendars for both commercial and private use. The
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Ann Ritter, Holloways manufacturing manager, wants to determine the best production plan for the demand requirements and capacity plan shown in the following table. (Here, demand and capacities are expressed as thousands of calendars rather than as employee-period equivalents.) Ritter knows that the regular-time cost is $0.50 per unit, overtime cost is $0.75 per unit, subcontracting cost is $0.90 per unit, and inventory holding cost is $0.10 per calendar per quarter. Unused regular-time capacity is not paid.
a. Recommend a production plan to Ritter, using the transportation Method (Production Planning) module of POM for Windows. (Do not allow any stock out or backorders to occur.)
b. Interpret and explain your recommendation
c. Calculate the total cost of your recommended productionplan.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
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