Given the following forecast and cost information, determine the total cost of a chase plan that uses

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Given the following forecast and cost information, determine the total cost of a chase plan that uses regular time production output of 400 units per month, overtime is used when needed up to a maximum of 40 units per month, and subcontracting is used if additional units are needed to meet the forecast:

Month 430 400 440 450 480 Forecast 480


Regular time cost = $50 per unit
Overtime cost = $65 per unit
Subcontracting cost = $75 per unit

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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