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.)
Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Total
Forecast 275 350. 225. 300. 280. 275 270. 1975
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