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Need detail explanation and production table Question 2 A fabric mill has developed the following forecasts (In hundred bolts of cloth. The mill has a
Need detail explanation and production table
Question 2 A fabric mill has developed the following forecasts (In hundred bolts of cloth. The mill has a normal capacity of 275 units (a unit equals one hundred bolts) per month, and employs 275 workers. Regular labour cost is $2,000 per unit and overtime labour cost is $3,000 per unit and the subcontracting cost is $4000 per unit. Up to 2 units per month can be made during overtime. The beginning inventory is zero. Hiring cost is $1,500 per worker. The inventory holding cost is $1,000 per unit per month, and back-order cost is $5,000 per unit per month. Please generate a level output plan with an using the average demand as production rate. What is the total cost of this planStep by Step Solution
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