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

question 57

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 overtime production in the second quarter?

• A)two units
• B)three units
• C)four units
• D)five units

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Definitions:

FIFO

"First-In, First-Out," an inventory valuation method where goods first purchased or produced are the first to be sold or used.

Weighted Average

Weighted average is a calculation that takes into account the varying degrees of importance of the numbers in a dataset, assigning weights to some of the numbers more than others.

Inventory Carrying Cost

The total cost of holding inventory, which includes warehousing, depreciation, obsolescence, spoilage, insurance, and taxes, among others.

Storage Costs

Expenses incurred for storing goods, materials, or data, which may include physical storage facilities or digital storage solutions.