Question: A manufacturing firm uses a level utilization production - planning horizon of three months. They have developed a forecast for the coming three months that

A manufacturing firm uses a level utilization production-planning horizon of three months. They have developed a forecast for the coming three months that appears in the table. They can add no more than 5% of their production capacity as overtime and can order no more than 10% of a month's regular capacity via subcontractors. The company has a zero backorder policy but has space for a maximum of 250 items in their finished-goods inventory. All extra costs are shown in the table.
\table[[,October,November,December],[Forecasted Demand,2,100,1,900,2,350],[Regular Capacity,2,000,2,000,2,000],[Workforce level,,,],[Overtime ($50/unit),,,],[Subcontracting ($120/unit),,,],[Inventory holding ($15/unit),,,],[,,,],[Total Cost,,,]]
Use the information in Table above. What is the total cost (overtime, subcontracting and inventory holding costs) for the month of October corresponding to the least cost production plan? (Note: Mixed strategy is not considered here)
A) $4,000
B) $5,000
C) $6,000
D) $7,500
 A manufacturing firm uses a level utilization production-planning horizon of three

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