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LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming three quarters. Demand in each of the three quarters
LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming three quarters. Demand in each of the three quarters and production, overtime, and subcontracting capacities are reported in the table below, in addition to the feasible production plan. The relevant costs are:
Regular time production cost is $ unit.
Overtime production cost is $ unit.
Subcontracting cost is $ unit.
Inventory is held at a cost of $ unitquarter
Units may be backordered at a cost of $ unitquarter
tabletableProductionResourceDemand in Quarter,Capacity,QQOvertime QSubcontract QRegular Time QOvertime QSubcontract QRegular Time QOvertime QSubcontract QDemand in Quarter,
What is the inventory cost for the year?
What is the backorder cost for the year?
What is the total overtime production cost for the year?
What is the total cost for the three periods?
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