A small company produces recreational vehicles. The marketing manager has developed the following forecasts (in units): Develop
Question:
A small company produces recreational vehicles. The marketing manager has developed the following forecasts (in units):
Develop the minimum cost production plan and compute its total cost.
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Month Mar Apr May Jun Jul Aug Sep Total Forecast 50 44 55 60 60 40 50 359 Use the following information: Regular labour cost $240 per unit Overtime labour cost $360 per unit Regular capacity 40 units per month, using 5 workers Overtime capacity 8 units per month Holding cost $30 per unit per month Back-order cost $100 per unit per month Beginning inventory Desired ending inventory o Hiring cost $2,000 per worker
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Hiring costunit 20008 250 Producing 40 units by 5 workers each month results in a total of 79 units ...View the full answer
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Related Book For
Operations Management
ISBN: 9781259270154
6th Canadian Edition
Authors: William J Stevenson, Mehran Hojati, James Cao
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