Scenario 8 The Labor Contract at the Plant Prohibits Both Overtime and Problem

question 74

Multiple Choice

Scenario 8.2 - Willow
A company faces the aggregate planning problem shown in the table below.Cost of regular production is $8 per unit,the cost of producing the same unit on overtime is $15,the cost of subcontracting is $12 per unit,and the cost of carrying a unit in inventory from one month to the next is $6.
$$\begin{array} { | l | c | c | c | c | c | } \hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \\\hline \text { Forecast } & 400 & 800 & 1200 & 700 & 300 \\\hline \text { Beginning Inventory } & 100 & & & & \\\hline \text { Regular Time } & & & & & \\\hline \text { Overtime } & & & & & \\\hline \text { Subcontracting } & & & & & \\\hline \text { Ending Inventory } & & & & & \\\hline\end{array}$$ The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five-month window.The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week.By policy,management wants to avoid stockouts.
-How many months does the regular time output exceed plant capacity in the optimal solution to Scenario 8.2?

• A)0
• B)1
• C)2
• D)3

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Definitions:

Personal Files

Personal files are records kept by an organization that contain various documents related to an employee, such as employment contracts, performance evaluations, and disciplinary actions.

Unreasonable Risks

Risks associated with a product or activity that exceed what would be considered acceptable or safe under normal circumstances.

Reasonably Safe Conditions

Conditions that do not present a significant risk of harm to individuals and are maintained according to accepted standards of safety.

Agency Contract

A legal agreement where one party, the agent, acts on behalf of another party, the principal, in business transactions.