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. The plant has no limits on the number of units produced by overtime or subcontractors and adopts a chase plan strategy for the six-month planning period. What is the cost for month 6 of their chase plan?
A) $8,000
B) $9,852
C) $11,317
D) $12,631

Question

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. The plant has no limits on the number of units produced by overtime or subcontractors and adopts a chase plan strategy for the six-month planning period. What is the cost for month 6 of their chase plan?
A) $8,000 
B) $9,852 
C) $11,317 
D) $12,631

Quizplus · Accepted Answer

The Answer of 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. The plant has no limits on the number of units produced by overtime or subcontractors and adopts a chase plan strategy for the six-month planning period. What is the cost for month 6 of their chase plan?
A) $8,000 
B) $9,852 
C) $11,317 
D) $12,631

Table D.2 Bahouth Enterprises Produces a Variety of Hookahs for Clients Around