Scenario 8.3 - Mousetraps
A company faces the aggregate planning problem shown in the table below.Cost of regular production is $15 per unit,the cost of producing the same unit on overtime is $22.50,the cost of subcontracting is $27 per unit,and the cost of carrying a unit in inventory from one month to the next is $10.
The labor contract at the plant prohibits both overtime and subcontracting output to exceed 250 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.
-Which is the first month that overtime is used for the optimal aggregate plan for Scenario 8.3?
A) July
B) August
C) September
D) October
Correct Answer:
Verified
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Q47: Scenario 8.3 - Mousetraps
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Q48: The strategy where workforce (capacity)is kept stable
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Q50: The strategy where a stable machine capacity
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Gang
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Q55: Scenario 8.1 - Gang Aft Agley
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Q56: Scenario 8.3 - Mousetraps
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