Asked by Jennifer Forest on Jun 27, 2024
Verified
Use the Okra Colada scenario to answer this question.What constraints are associated with the level of inventory at the end of each period when using linear programming to solve this sales and operations planning problem?
A) EIJAN-MAY = 0
B) EIJUNE ≥ 500,EIJAN-MAY = 0
C) EIJAN-MAY ≥ 0
D) EIJUNE ≥ 500,EIJAN-MAY ≤0
Marginal Subcontracting Cost
The extra expense faced when outsourcing an additional unit of production or service.
Layoff Cost
Expenses associated with terminating employees, which may include severance pay, benefits continuation, and other related costs.
Hiring And Training Cost
Expenses associated with recruiting new employees and providing them with the necessary training to perform their job duties.
- Discuss the strategic considerations for inventory management in response to seasonal demand fluctuations.
Verified Answer
AR
Asilah RahmatJun 28, 2024
Final Answer :
B
Explanation :
The constraints for the level of inventory at the end of each period should ensure that the ending inventory in June is at least 500 units, as specified in the problem statement. Additionally, the ending inventory from January to May should not be negative, indicating that stockouts are not allowed during these months.
Learning Objectives
- Discuss the strategic considerations for inventory management in response to seasonal demand fluctuations.