14) A manufacturer of industrial seafood processing equipment wants you to devel

Question

14) A manufacturer of industrial seafood processing equipment wants you to develop an aggregate plan for the four quarters of the upcoming year using the following data on demand and capacity. Back orders are not allowed. How much (if any) regular time capacity goes unused? Quarter Units Regular Time Over- Sub- Regular time cost $1.25/unit time contract 1 200 400 80 Overtime cost $1.50/unit 2 750 400 80 100 Subcontracting cost 2.00/unit 3 1200 800 160 100 Carrying cost $0.50/unit/quarter 4 450 400 80 100 Initial inventory 250 units A.    0 B.    20 C.   40 D.   120 E.    None of the above 14) A manufacturer of industrial seafood processing equipment wants you to develop an aggregate plan for the four quarters of the upcoming year using the following data on demand and capacity. Back orders are not allowed. How much (if any) regular time capacity goes unused?

Explanation / Answer

Over time and subcontracting is done only when regular time is fully worked. In all the quarters under observation, we see over time. That means there is no unused regular time.

So answer is = 0 Option - A

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