Question: PM Computers assembles its own brand of personal computers from component parts it purchases overseas and domestically. PM sells most of its computers locally to
PM Computers assembles its own brand of personal computers from component
parts it purchases overseas and domestically. PM sells most of its computers locally to different
departments at State University as well as to individuals and businesses in the immediate
geographic region. PM has enough regular production capacity to produce computers per
week. It can produce an additional computers with overtime. The cost of assembling,
inspecting, and packaging a computer during regular time is $ Overtime production of a
computer costs $ Furthermore, it costs $ per computer per week to hold a computer in
inventory for future delivery. PM wants to meet all customer orders, with no shortages, to
provide quality service. PMs order schedule for the next weeks is as follows:
Production Capacity: computers per week
more computers with overtime
Assembly Costs: $ per computer regular time.
$ per computer overtime
Inventory Holding Cost: per computer per week.
Inventory Holding Cost:
Week Computer Orders
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