Question

Consider the following demands for 4 quarters i.e. Q1 - 600 Q2 - 700 Q3 - 600 and 04 -
700 units respectively. There are 50 units on hand which can be used to meet the demands.
150 units per month can be produced at the regular rate of $50 per unit. The company can
manufacture up to 300 units in Q1, 150 in Q2. none in Q3 and 200 in Q4 as overtime
capacity. Overtime cost is $75 per unit. A total of 300 units per quarter can be subcontracted
per quarter at a cost of $85 per unit. Inventory holding costs are $7 per set per quarter. The
company cannot have lost sales and that backlogging is not allowed. What is the optimal
production cost for the company?
a. $212,000
b. $156,000
c. $186,450
d. $148,950​

Answer 1

Answer:

a

Explanation:

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