Scenario 8.2 - Willow
A company faces the aggregate planning problem shown in the table below.Cost of regular production is $8 per unit,the cost of producing the same unit on overtime is $15,the cost of subcontracting is $12 per unit,and the cost of carrying a unit in inventory from one month to the next is $6.
The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five-month window.The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week.By policy,management wants to avoid stockouts.
-How many units are produced using overtime in the optimal aggregate plan developed to address Scenario 8.2?
A) 360
B) 200
C) 400
D) 280
Correct Answer:
Verified
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