Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294. If a LEVEL PRODUCTION strategy is adopted with a constant production of 280 units per period. The regular production cost is RO 12 per unit, whereas 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 inventory level at the end of period 2? Select one: O a.0 O b.41 O .17 O d. None is correct e. 20

Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294. If a LEVEL PRODUCTION strategy is adopted with a constant production of 280 units per period. The regular production cost is RO 12 per unit, whereas 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 inventory level at the end of period 2? Select one: O a.0 O b.41 O .17 O d. None is correct e. 20

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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