Question: 8. Refer to the data in Problem 6. If backorders are allowed, determine the total cost of a plan if overtime is limited to 40

8. Refer to the data in Problem 6. If backorders
8. Refer to the data in Problem 6. If backorders
8. Refer to the data in Problem 6. If backorders
8. Refer to the data in Problem 6. If backorders are allowed, determine the total cost of a plan if overtime is limited to 40 units per month and subcontracting is limited to 20 units per month. Backordering costs are $30 per unit. 6. Given the following forecast and cost information, determine the total cost of a plan that uses regular time production output of 600 units per month, overtime is used when needed up to a maximum of 60 units per month, and subcontracting is used if additional units are needed to meet the forecast. our operations 2 Month 3 4 5 6 570 600 630 Forecast 650 670 690 Regular time cost = $40 per unit Overtime cost = $60 per unit Subcontracting cost = $80 per unit Holding cost = $10 per unit per month Note: Holding costs for each month are calculated on the average inventory level and in U.S. dollars

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