Table D.3
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.3. What is the total cost of the optimal production plan?
A) less than or equal to $1,000
B) greater than $1,000 but less than or equal to $2,000
C) greater than $2,000 but less than or equal to $3,000
D) greater than $3,000

Question

Table D.3
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.3. What is the total cost of the optimal production plan?
A) less than or equal to $1,000 
B) greater than $1,000 but less than or equal to $2,000 
C) greater than $2,000 but less than or equal to $3,000 
D) greater than $3,000

Quizplus · Accepted Answer

The optimal production plan is to produce 100 units of product A and 50 units of product B. The total cost of this plan is $1,000.

Table D.3 The Harper Company Is in the Process of Production Planning