How should overtime capacity be utilized

Assignment Help Operation Management

Reference no: EM132156757

Period Forecast

1 200

2 200

3 300

4 400

5 500

6 200

Regular time: $20 per unit (280 units per period maximum)

Overtime: $30 per unit (40 units per period maximum)

Subcontracting: Not Available

Beginning Inventory: None

Carrying cost: $10 per unit per period

Backorder cost: $50 per unit per period

How should overtime capacity be utilized? (In what period, and how many units)

What are total regular time costs?

What are total overtime costs?

What are total carrying costs?

What are total backorder costs?

What are total costs for the plan?

Reference no: EM132156757

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