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Table D.2
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.2. If the planner decides to adopt a level plan for the planning period, what will the total output be for month 3?
Cross Selling
The practice of selling additional products or services to existing customers, often related to their previous purchases to enhance customer value.
Converting Nonbuyers
The process of persuading individuals who have not previously purchased a product or service to make a purchase.
New Applications
The novel uses or markets for existing products or technologies, often leading to innovation and expansion of business opportunities.
Adjacency Paths
Adjacency Paths relate to the strategic options a business may explore to grow by venturing into areas or markets closely related to its current operations or expertise.
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