Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts
Question:
a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Over-time is $ 60 per hundred bolts. Regular production can be less than regular capacity.
b. Would the total cost be less with regular production with no overtime, but using a subcontractor to handle the excess above regular capacity at a cost of $ 50 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $ 2 per hundredbolts.
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