Question: Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle the excess above regular
Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle the excess above regular capacity at a cost of $53 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $2 per hundred bolts. (Round your Average inventory values to 1 decimal place. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
Month 1. 2. 3. 4. 5. 6. 7
Total Forecast 275 350. 225. 300. 280. 275. 270. 1,975
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