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LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four quarters
LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four quarters. Demand in each of the four 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
Production Resource Demand in Quarter Capacity
Q Q Q Q
Regular Time Q
Overtime Q
Subcontract Q
Regular Time Q
Overtime Q
Subcontract Q
Regular Time Q
Overtime Q
Subcontract Q
Regular Time Q
Overtime Q
Subcontract Q
Demand in Quarter
What is the total number of units held in inventory for the year?
What is the total regular time production cost?
What is the total overtime production cost for the year?
What is the total cost for the year?
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