Question
Keep the current workforce at a level capable of producing 1,400 units per month. Permit a maximum of 20 % overtime at a premium of
Keep the current workforce at a level capable of producing 1,400 units per month. Permit a maximum of 20% overtime at a premium of $42 per unit. Assume that warehouse limitations permit no more than a 180-unit carryover from month to month. This plan means that any time inventories reach 180, the plant is kept idle. Inventory carrying cost is $25 per unit per month. Idle time per unit is $55. Any additional needs are subcontracted at a cost of $55 per incremental unit. (Enter all responses as wholenumbers.)
Month Demand Production Overtime(Units) Ending Inventory Subcontract(Units) Idle Time(Units)
July 900 1400
Aug
Sept
Oct
Nov
Dec
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started