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Scenar A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. Forecast Beginning Inventory Regular Time Overtime Subcontracting Ending Inventory January 400 100 February 800 March 1200 April 700 May 300 The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five-month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts. Without actually solving the aggregate planning problem, it is safe to conclude that in the optimal solution to Scenario 8.2, Select one: O a. the number of units made using regular time will exceed the forecast. O b. the number of units made using subcontracting will exceed the number of units made using regular time. Oc the total ending inventory will exceed the number of units made using overtime. O d. the number of units made using subcontracting will exceed the number of units made using overtime.

Scenar A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. Forecast Beginning Inventory Regular Time Overtime Subcontracting Ending Inventory January 400 100 February 800 March 1200 April 700 May 300 The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five-month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts. Without actually solving the aggregate planning problem, it is safe to conclude that in the optimal solution to Scenario 8.2, Select one: O a. the number of units made using regular time will exceed the forecast. O b. the number of units made using subcontracting will exceed the number of units made using regular time. Oc the total ending inventory will exceed the number of units made using overtime. O d. the number of units made using subcontracting will exceed the number of units made using overtime.

Practical Management Science
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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Scenario 8,2 - Willow A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. Forecast Beginning Inventory Regular Time Overtime Subcontracting Ending Inventory January 400 100 February 800 March 1200 April 700 May 300 The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five-month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts. Without actually solving the aggregate planning problem, it is safe to conclude that in the optimal solution to Scenario 8.2, Select one: O a. the number of units made using regular time will exceed the forecast. O b. the number of units made using subcontracting will exceed the number of units made using regular time. O c. the total ending inventory will exceed the number of units made using overtime. O d. the number of units made using subcontracting will exceed the number of units made using overtime. 1 2 4 Für
Transcribed Image Text:Scenario 8,2 - Willow A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. Forecast Beginning Inventory Regular Time Overtime Subcontracting Ending Inventory January 400 100 February 800 March 1200 April 700 May 300 The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five-month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts. Without actually solving the aggregate planning problem, it is safe to conclude that in the optimal solution to Scenario 8.2, Select one: O a. the number of units made using regular time will exceed the forecast. O b. the number of units made using subcontracting will exceed the number of units made using regular time. O c. the total ending inventory will exceed the number of units made using overtime. O d. the number of units made using subcontracting will exceed the number of units made using overtime. 1 2 4 Für
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