Question: Refer to Example 5. Suppose that regular-time capacity' will be reduced to 440 units in month 3 to accommodate a companywide safety inspection of equipment.
Example 5
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Month 3 Demand forecost Capacity (maximum) 550 700 Reqular Overlinie Part time 500 500 50 120120 750 500 100 50 Beginning inven 100 Costs Reqular time Overtime Part time Inventory hoding cost Backorder cost $60 per unit $80 per unit $90 per unif $1 per unit per month $3 per unit per month
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