Table D.4 Bahouth Enterprises Produces a Variety of Hookahs for Clients Around

question 79

Multiple Choice

Table D.4
Bahouth Enterprises produces a variety of hookahs for clients around the globe.Their small plant has a highly flexible workforce that can switch between products seamlessly.They forecast using a six-month planning period and have a demand forecast as shown in the table.The per-unit costs for each output option the sales and operations planner has at his disposal are indicated in the table.Regular output costs $40 per unit,overtime production is $60 per unit,and subcontracting is $70 per unit.Holding inventory from one month to the next costs $2 per unit per month and a backlog costs $5 per unit per month.Regular plant capacity is 300 units per month.

-Use the information in Table D.4.If the planner decides to adopt a level plan for the planning period,what will the total output be for month 3?

• A)between 350 and 400 units
• B)between 400 and 450 units
• C)between 450 and 500 units
• D)more than 500 units