Table D.5 The Harper Company Is in the Process of Production Planning

question 45

Multiple Choice

Table D.5
The Harper Company is in the process of production planning for the next four quarters.The company follows a policy of a stable workforce and uses overtime and subcontracting to meet uneven forecasted demand.Anticipation inventory is also allowed,but not backorders.Undertime is paid,at a rate of $5.00 per unit.The beginning (or current) inventory is 25 units.Details are shown in the following POM for Windows table.
-Use the information in Table D.5.According to the optimal production plan,what is the total ending inventory in the second quarter? Assume that the plan that uses the least amount of subcontracting is used.

• A)none
• B)two units
• C)three units
• D)greater than three units

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