Business, 24.12.2019 06:31 pumkinsrck1840

Drew's company. ace high sells customized sets of poker chips. he is developing a plan for next year on a quarterly basis. the expected demand is 600 700 600 and 700 set of chips, respectively for quarters one through four. he currently has 50 sets on hand that can be used to meet next year's demand. he can produce 150 units per month (or 450 per quarter) at the regular rate of $50 per set. his team will work overtime when needed and available. producing up to 300 units in q1, 150 in q2. none in q3 and 200 in q4. sets produced via overtime cost a total of $75 per set. he can leverage a competitor firm and outsource production at the cost of $85 per set with a capacity of 300 units per quarter. storage costs are $7 per set per quarter. drew has determined that he cannot have lost sales. and that backlogging is not allowed. what is the optimal cost for drew? base on the optimal solution: how many total units would be produced via regular time? how many total units would be produced via overtime? how many units would be produced via subcontracting? how many units of excess capacity are there?

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Drew's company. ace high sells customized sets of poker chips. he is developing a plan for next year...

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