=+14. Rich Sawyer runs a landscaping firm. Each year Rich contracts for labor and equipment hours from

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=+14. Rich Sawyer runs a landscaping firm. Each year Rich contracts for labor and equipment hours from a local construction company. The construction company has given Rich three different capacity options:

CAPACITY OPTION LABOR HOURS EQUIPMENT HOURS High capacity 9,000 6,000 Medium capacity 6,750 4,500 Low capacity 4,500 3,000 Cost per labor hour: $10 per hour Cost per equipment hour: $20 per hour Once Rich has chosen a capacity option, he cannot change it later. In addition, the cost for each capacity option is fixed.

That is, Rich must pay for all labor and equipment hours he

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Related Book For  book-img-for-question

Introduction To Operations And Supply Chain Management

ISBN: 9781292291581

5th Global Edition

Authors: Cecil B. Bozarth, Robert B. Handfield

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