Table 10.1
Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year. It allows for regular time, part time, overtime, and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods. Both anticipation inventory and backorders are allowed. The beginning (or current) inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following.

-Use the information in Table 10.1. What would be the total plan cost if no more than five units each could be made each month by part-time, overtime, and subcontracted workers?
A) $4,920
B) $4,822
C) $4,775
D) $4,550

Question

Table 10.1
Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year. It allows for regular time, part time, overtime, and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods. Both anticipation inventory and backorders are allowed. The beginning (or current) inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following.
 
-Use the information in Table 10.1. What would be the total plan cost if no more than five units each could be made each month by part-time, overtime, and subcontracted workers?
A) $4,920 
B) $4,822 
C) $4,775 
D) $4,550

Quizplus · Accepted Answer

The total plan cost is calculated by considering the maximum production capacity of five units each from part-time, overtime, and subcontracted workers, and then summing up the costs associated with each type of labor to find the total cost.

Table 10.1 Bart Incorporated Manufactures Rotary Air Fans and Uses a Production-Planning