Question: Is this correct? 3. Cheyenne Fabrications must develop a plan to allocate capacity to fulfilling forecasted demand in October, November, and December. Assume the following

Is this correct? 3. Cheyenne Fabrications must

Is this correct?

3. Cheyenne Fabrications must develop a plan to allocate capacity to fulfilling forecasted demand in October, November, and December. Assume the following costs: $100 $180 Regular time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month Backorder cost $360 $8 $50 A) Complete the cost table below. UNIT COST TABLE DEMAND FOR Period 1 (October) Period 2 (November) Period 3 (December) Unused Capacity (Dummy) SUPPLY FROM Initial Inventory 0 8 16 0 Regular Time 100 108 116 0 Period 1 (October) Overtime 180 188 196 0 Subcontracting 360 368 376 0 Regular Time 150 100 108 0 Overtime 230 180 188 0 Subcontracting 410 360 Period 2 (December) (November) Period 3 368 0 Regular Time 150 150 100 0 Overtime 230 230 180 0 Subcontracting 410 410 360 0

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