Solved: Use steady regular output of 400 units per month use, Operation Management

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Use steady regular output of 400 units per month use

Determine the total cost for this plan given the following forecast:

Use steady regular output of 400 units per month, use overtime as needed for up to 40 units per month, and use subcontracting to make up any needed output to match the forecast. Unit costs are:
Regular output $ 25
Overtime $ 40
Subcontract $ 60
Average Balance Inventory $15

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Operation Management: Use steady regular output of 400 units per month use

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