Table D.5
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.5.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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