Question: Consider the following Cost, Capacity and Demand data Regular time labor cost: $10 per hour Overtime labor cost: $15 per hour Beginning workforce: 20 employees

Consider the following Cost, Capacity and Demand

Consider the following Cost, Capacity and Demand data Regular time labor cost: $10 per hour Overtime labor cost: $15 per hour Beginning workforce: 20 employees Backorder cost per unit: $20 Beginning inventory: 0 units Inventory holding cost per unit: $10 Labor standard per unit: 5 hours Demand data Regular time available/period: 160 Period 1: 535 units hours/employee Period 2: 643 units Overtime available/period: 30 Period 3: 739 units hours/employee Period 4: 695 units If the firm uses a chase demand strategy using overtime only, how many units will the firm produce in overtime in Period 4? A. 695 units B. 220 C. O units D. 55 units E. 640 units

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