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Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand. Subcontract cost
Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand. Subcontract cost is $80 per unit. Subcontracting capacity is limited to 500 units per month. The warehouse and overtime constraints from Plan D do not apply to this plan. Plan E Production Ending Subcontract (Units) Inventory 200 Month Demand (Units) O December 1 January 1,450 1,600 2 February 1,500 1,600 3 March 1,600 1,600 4 April 1,700 1,600 5 May 6 June 7 July 2,100 1,600 2,100 1,600 1,700 1,600 8 August 1,500 1,600 Enter your answer in the edit fields and then click Check Answer.
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
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