
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. Given the information in the optimal tableau, what is the subcontracting cost, in dollars per unit?
A) $5
B) $7
C) $10
D) $12
Correct Answer:
Verified
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