Table 10.1 Bart Incorporated Manufactures Rotary Air Fans and Uses a Production-Planning

question 3

Multiple Choice

Table 10.1
Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year. It allows for regular time, part time, overtime, and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods. Both anticipation inventory and backorders are allowed. The beginning (or current) inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following.

-Use the information in Table 10.1. Which of these changes would result in the greatest improvement (in terms of total cost) for the production plan?

• A) Produce an additional 12 units using overtime in the first month.
• B) Produce an additional 12 units using subcontracting in the second month.
• C) Produce an additional 12 units using overtime in the third month.
• D) Produce an additional 12 units using subcontracting in the fourth month.

---

Definitions:

American Tobacco

The American Tobacco Company was a major American tobacco company founded in 1890 by J.B. Duke, which played a significant role in the development of the tobacco industry in the United States.

Labor Unions

Labor unions are organized groups of workers that aim to protect and advance their members' interests through collective bargaining with employers.

Antitrust Enforcement

The regulation and legal processes initiated by governments to prevent or reduce anti-competitive practices and promote fair competition among firms.

Horizontal Merger

A merger between firms that are in direct competition with each other, operating in the same industry and often in the same markets.