Question
The Kleenglass Corporation makes an excellent dishwasher which is highly in demand. Orders have been received from several retail stores for delivery over the next
The Kleenglass Corporation makes an excellent dishwasher which is highly in demand. Orders have been received from several retail stores for delivery over the next three months. The demand for these dishwashers is given in the table.
Month | June | July | August |
Demand | 195 | 215 | 205 |
Due to limited capacity only 200 of these dishwashers can be produced per month at a cost of $300. However if the company uses overtime they can produce an additional 15 dishwashers per month at a cost of $325. The company has the option of storing excess production in inventory with a holding cost of $20 per dishwasher.
How many overtime Units should be produced in July? [a]
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