Table D.4
Bahouth Enterprises produces a variety of hookahs for clients around the globe.Their small plant has a highly flexible workforce that can switch between products seamlessly.They forecast using a six-month planning period and have a demand forecast as shown in the table.The per-unit costs for each output option the sales and operations planner has at his disposal are indicated in the table.Regular output costs $40 per unit,overtime production is $60 per unit,and subcontracting is $70 per unit.Holding inventory from one month to the next costs $2 per unit per month and a backlog costs $5 per unit per month.Regular plant capacity is 300 units per month.

-Use the information in Table D.4.The plant has no limits on the number of units produced by overtime or subcontractors and adopts a chase plan strategy for the six-month planning period.What is the cost for month 6 of their chase plan?
A)$8,000
B)$9,852
C)$11,317
D)$12,631

Question

Table D.4
Bahouth Enterprises produces a variety of hookahs for clients around the globe.Their small plant has a highly flexible workforce that can switch between products seamlessly.They forecast using a six-month planning period and have a demand forecast as shown in the table.The per-unit costs for each output option the sales and operations planner has at his disposal are indicated in the table.Regular output costs $40 per unit,overtime production is $60 per unit,and subcontracting is $70 per unit.Holding inventory from one month to the next costs $2 per unit per month and a backlog costs $5 per unit per month.Regular plant capacity is 300 units per month.
 
-Use the information in Table D.4.The plant has no limits on the number of units produced by overtime or subcontractors and adopts a chase plan strategy for the six-month planning period.What is the cost for month 6 of their chase plan?
A)$8,000 
B)$9,852 
C)$11,317 
D)$12,631

Quizplus · Accepted Answer

The Answer of Table D.4
Bahouth Enterprises produces a variety of hookahs for clients around the globe.Their small plant has a highly flexible workforce that can switch between products seamlessly.They forecast using a six-month planning period and have a demand forecast as shown in the table.The per-unit costs for each output option the sales and operations planner has at his disposal are indicated in the table.Regular output costs $40 per unit,overtime production is $60 per unit,and subcontracting is $70 per unit.Holding inventory from one month to the next costs $2 per unit per month and a backlog costs $5 per unit per month.Regular plant capacity is 300 units per month.
 
-Use the information in Table D.4.The plant has no limits on the number of units produced by overtime or subcontractors and adopts a chase plan strategy for the six-month planning period.What is the cost for month 6 of their chase plan?
A)$8,000 
B)$9,852 
C)$11,317 
D)$12,631

Table D.4 Bahouth Enterprises Produces a Variety of Hookahs for Clients Around