A company has normal capacity for 2,500 units a month.If, for a given month, X = demand, which of the following correctly allows for either overtime or under-time in a given month? A)X_t + O_t - U_t = 2,500 B)X_t - O_t + U_t = 2,500 C)X_t- O_t + U_t 2,500

Question

A company has normal capacity for 2,500 units a month.If, for a given month, X = demand, which of the following correctly allows for either overtime or under-time in a given month? A)X_t + O_t - U_t = 2,500 B)X_t - O_t + U_t = 2,500 C)X_t- O_t + U_t < 2,500 D)X_t + O_t - U_t > 2,500

Quizplus · Accepted Answer

Option B correctly allows for overtime or under-time in a given month. The formula X_t represents the regular production, and the formula F1F1F1S1-F1F1F10 represents the number of days in the month. The formula O_t represents overtime production and U_t represents undertime production. The sum of regular, overtime, and undertime production should be equal to or greater than the normal capacity, which is 2,500 units a month.

A Company Has Normal Capacity for 2,500 Units a Month