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Bart Incorporated manufactures rotary air fans and uses a production planning horizon of one-half year. It allows for part time, overtime, and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods. Both anticipation Inventory and backorders are allowed. The beginning (or current) Inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following. Forecasted demand (of units) 2 3 Total Workforce Level (of units) 125 120 70 570 Inputs 80 Part Time (of units) BO BO 480 Overtime (of units) 12 12 12 72 0 o Subcontract # of units) 0 0 0 Beginning inventory (of units) 12 0 Inventory Ending inventory (of units) 0 0 Backlog (w of units) 21 49 0 Workforce level $5 400 400 400 400 $2,400 Part Time $6 72 72 72 72 $432 Overtime $7.5 0 0 Cost ON $0 0 Subcontract $8 0 Calculations O $0 Inventory holding $5 30 0 5 $115 Back orders $20 420 980 740 0 $2,540 Total $552 $922 $1,452 $1,212 $872 $477 $5,487 wolona ??800 ?? ??? SOON 400088 80000880000 ????? If the anticipated inventory at the start of first month is 30 units what will be inventory holding cost for the entire period ? 115 215 145 165 If the anticipated inventory at the start of first month is 30 units what will be back order cost in month 4? 400 $540 640 740

 
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