Operations and Supply Chain Management
Operations and Supply Chain Management
14th Edition
ISBN: 9780078024023
Author: F. Robert Jacobs
Publisher: MCG
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Chapter 19, Problem 1DQ
Summary Introduction

To explain: The basic controllable variables in a production planning the four major costs.

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Explanation of Solution

The basic controllable variables in a production planning problem are:

  • The production output.
  • The level of work-force.
  • The inventory level of the materials in the organization.

The four major costs are:

  • The fixed and variable production costs.
  • The costs involved in changing the rate of production.
  • The cost involved in holding the inventory.
  • The cost incurred due to inventory backlogs in the production process.

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