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Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294 respectively. If a CHASE DEMAND strategy is adopted, and the regular production cost is RO 12 per unit with a

Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294 respectively. If a CHASE DEMAND strategy is adopted, and the regular production cost is RO 12 per unit with a maximum regular production of 280 units per period. While, the overtime and subcontract costs are RO 20 and RO 25 per unit respectively. There is no limit on subcontracting; however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. What will be the total cost of overtime production? Select one: O a. 19668 O b. O c. 800 O d. 1275 O e. None is correct

Apr 29 2021 View more View Less

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