Maha industries produces a product whose anticipated demand for the six periods is 263, 256, 301, 312, 304, and 294. The firm chooses chase demand production strategy. The regular production cost is RO 12 per unit with a maximum regular production of 280 units per period. While, the overtime and subcontract costs are RO 20 and RO 25 per unit respectively. There is no limit on subcontracting; however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. What will be the total cost of overtime production? O a. 1275 O b. None is correct О с. 800 O d. 0 O e. 19668

Maha industries produces a product whose anticipated demand for the six periods is 263, 256, 301, 312, 304, and 294. The firm chooses chase demand production strategy. The regular production cost is RO 12 per unit with a maximum regular production of 280 units per period. While, the overtime and subcontract costs are RO 20 and RO 25 per unit respectively. There is no limit on subcontracting; however, maximum overtime production capacity is 10. Average inventory holding cost is RO 5 per unit per period. What will be the total cost of overtime production? O a. 1275 O b. None is correct О с. 800 O d. 0 O e. 19668

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Description: Maha industries produces a product whose anticipated demand for the six periods is 263, 256, 301, 312,304, and 294. The firm chooses chase demand production strategy. The regular production cost is RO 12per unit with a maximum regular production of

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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