Product Inventory Holding Cost ($/unit-mo) A 1.0 B 3.0 Demand Forecast May June July Product A 300 100 500 Product B 600 200 400 All stockouts are backordered Workforce 15 workers No hiring is possible. Capacity 160 hours per worker per month regular time = 40 hours per worker per month overtime Regular time wage rate = $12 per hour Overtime wage rate = 1.5 X regular time wage rate Suppose our plan is to produce, over the months of May, June and July, 300, 300 and 300 units of Product A and 400, 400, and 400 units of Product B. At the end of June our on-hand inventory of Product B would be..? A. <= 0 B.> 0 and <= 50 C. >50 and <= 100 D. >100 Std. Time (person- hrs/part) 2 4 Beginning Inventory 0 0 Backorder Cost ($/unit-mo) 10 20

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Product Std. Time
Inventory
Holding Cost
($/unit-mo)
(person-
hrs/part)
A
2
1.0
B
4
3.0
Demand Forecast
May
June
July
Product A
300
100
500
Product B
600
200
400
All stockouts are backordered
Workforce 15 workers
No hiring is possible.
Capacity=160 hours per worker per month regular time
= 40 hours per worker per month overtime
Regular time wage rate = $12 per hour
Overtime wage rate = 1.5 X regular time wage rate
Suppose our plan is to produce, over the months of
May, June and July, 300, 300 and 300 units of
Product A and 400, 400, and 400 units of Product B.
At the end of June our on-hand inventory of Product
B would be..?
A. <= 0
B.> 0 and <= 50
C. >50 and <= 100
D. >100
Beginning
Inventory
0
0
Backorder
Cost
($/unit-mo)
10
20
Transcribed Image Text:Product Std. Time Inventory Holding Cost ($/unit-mo) (person- hrs/part) A 2 1.0 B 4 3.0 Demand Forecast May June July Product A 300 100 500 Product B 600 200 400 All stockouts are backordered Workforce 15 workers No hiring is possible. Capacity=160 hours per worker per month regular time = 40 hours per worker per month overtime Regular time wage rate = $12 per hour Overtime wage rate = 1.5 X regular time wage rate Suppose our plan is to produce, over the months of May, June and July, 300, 300 and 300 units of Product A and 400, 400, and 400 units of Product B. At the end of June our on-hand inventory of Product B would be..? A. <= 0 B.> 0 and <= 50 C. >50 and <= 100 D. >100 Beginning Inventory 0 0 Backorder Cost ($/unit-mo) 10 20
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