Operations Management
Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 11, Problem 2CQ
Summary Introduction

Case summary: Company E decided to introduce premium water bottles with several designer flavors. The forecast is given as follows:

Month May June July August September October Total
Forecast 50 60 70 90 80 70 420

The regular production cost is $1 per tank load, the regular time capacity is 60 tank loads, the overtime cost is $1.6 per tank load, the subcontract cost is $1.8 per tank load, the holding cost is $2 per tank load per month, and the beginning inventory is 0. Backlogs are not allowed.

To determine: The information that can be shared with various partners.

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Operations Management

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