Question: Keep the current workforce at a level capable of producing 1,400 units per month. Permit a maximum of 20 % overtime at a premium of

Keep the current workforce at a level capable of producing 1,400 units per month. Permit a maximum of 20% overtime at a premium of $42 per unit. Assume that warehouse limitations permit no more than a 180-unit carryover from month to month. This plan means that any time inventories reach 180, the plant is kept idle. Inventory carrying cost is $25 per unit per month. Idle time per unit is $55. Any additional needs are subcontracted at a cost of $55 per incremental unit. (Enter all responses as wholenumbers.)

Month Demand Production Overtime(Units) Ending Inventory Subcontract(Units) Idle Time(Units)

July 900 1400

Aug

Sept

Oct

Nov

Dec

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