Operations Management
Operations Management
14th Edition
ISBN: 9781260238891
Author: Stevenson
Publisher: MCG
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Chapter 11, Problem 2P

A manager would like to know the total cost of a chase strategy that matches the forecast below using a ste.ady regular production rate of 200 units a month, a maximum of 20 units per month of overtime, and subcontracting as needed to make up any shortages. The unit costs are:

Regular production= $35

Overtime = $70

Subcontracting = $80

Chapter 11, Problem 2P, A manager would like to know the total cost of a chase strategy that matches the forecast below

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