Demand over the next five months is forecasted as 300, 200, 300, 400, and 500 units, respectively. Unit regular time and overtime production costs are $10 and $15, respectively.Total overtime production capacity is 1000 units for the next five months. Regular time production capacity is 300 units per month. Beginning inventory is 200 units. Holding cost is$5 per unit per month. What is the total cost (in $) over the next five months if the company has to meet the demand with no ending inventory each month?O a 17,750Ob. 17,450O . 16,950O d. 16,750O e. 16,500

When subcontracting and overtime options are used in order to meet the demand of a particular…

Answered: Demand over the next five months is…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 47P

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