Question: Table 10.1 A manufacturing firm uses a level utilization production-planning horizon of three months. They have developed a forecast for the coming three months
Table 10.1 A manufacturing firm uses a level utilization production-planning horizon of three months. They have developed a forecast for the coming three months that appears in the table. They can add no more than 5% of their production capacity as overtime and can order no more than 10% of a month's regular capacity via subcontractors. The company has a zero backorder policy but has space for a maximum of 250 items in their finished-goods inventory. All extra costs are shown in the table. October November December Forecasted Demand 2,100 Regular Capacity 2,000 1,900 2,000 2,350 2,000 Workforce level Overtime ($50/unit) Subcontracting ($120/unit) Inventory holding ($15/unit) Total Cost Use the information in Table 10.1. How many units are produced using subcontracting for the month of December corresponding to the least cost production plan? O units 200 units 100 units 50 units
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
