Question:-
Consider the data given the following table
  production plane
Period Demand Regular prod. overtime prod. others
1 500 500 -- --
2 650 650 -- --
3 800 650 150 --
4 900 650 150 ?
Given the fact that production in regular and overtime is limited to 650 and 150 respectively, the balance demand of 100 units in the 4th period can be met by :
Option (A)
Using overtime production in period 2
Option (B)
Using regular production in period 1
Option(C)
Subcontracting
Option(D)
Using any of the step indicated in (A), (B) and (C)
Correct Option:
(B)
Question Solution:
In the 4th period since regular production is limited to 650 and overtime is limited to 150, the balance demand of 100 units in the 4th period can be met by using regular production in period 1 \ Demand is only 500 but production capacity in regular period can be increased to 600 to meet the demand
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