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 productionplanning 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 of their production capacity as overtime and can order no more than of a month's regular capacity via subcontractors. The company has a zero backorder policy but has space for a maximum of items in their finishedgoods inventory. All extra costs are shown in the table.
tableOctober,November,DecemberForecasted Demand,Regular Capacity,Workforce level,,,Overtime $unitSubcontracting $unitInventory holding $unitTotal 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 $
B $
C $
D $
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