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The demand forecast for the next four periods is 90,100,120,and 140 units respectively.The plant has a regular capacity of 100 units per period,an overtime capacity of 10 units per period,and a subcontractor capacity of 5 units per period.There is a $5 per unit charge for regular production,an $8 per unit charge for overtime production,and a $9 per unit charge for subcontracting.The holding cost is $3 per unit per period,no shortages are allowed and the company has 5 units in inventory at the start of the planning period.
a.How many units should be produced using overtime?
b.How many units should be produced using subcontracting?
c.What is the total inventory holding cost?
d.What is the lowest total plan cost?
e.Fill out this table showing the number of units made by period using each type of production and the resulting inventory at the end of each period.
Anticipating Events
The cognitive ability to predict or expect future occurrences based on past experiences or knowledge.
Mother's Language
The first language that a person learns from their mother or the primary caregiver in early childhood.
Animal Sounds
The vocalizations or noises produced by animals as a form of communication among the same species or with others.
Baby Talk
A simplified form of language used by adults when communicating with infants, characterized by high pitch, slow rate, and exaggerated intonation.
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