Economy, asked by rajap0996, 1 month ago

Consider the following demands for 4 quarters i.e. Q1 - 600 Q2 - 700 Q3 - 600 and Q4 - 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?​

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Answered by Anonymous
2

Answer:

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