Question: Consider the following Cost, Capacity and Demand data Regular time labor cost: $10 per hour Overtime labor cost: $15 per hour Backorder cost per unit:

Consider the following Cost, Capacity and Demand data

Regular time labor cost: $10 per hour Overtime labor cost: $15 per hour Backorder cost per unit: $20 Inventory holding cost per unit: $10 Labor standard per unit: 4 hours Regular time available/period: 160 hours/employee Overtime available/period: 30 hours/employee Beginning workforce: 90 employees Beginning inventory: 200 units Demand data Period 1: 2800 units Period 2: 3340 units Period 3: 3820 units Period 4: 3600 units

If the firm uses a level output strategy using inventory and backorders, the production rate per period is

  • A. 0 units
  • B. 3390 units
  • C. 3340 units
  • D. 3820 units
  • E. 3450 units

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