Scenario 8 The Labor Contract at the Plant Prohibits Both Overtime and Problem

Multiple Choice

Scenario 8.2 - Willow
A company faces the aggregate planning problem shown in the table below.Cost of regular production is $8 per unit,the cost of producing the same unit on overtime is $15,the cost of subcontracting is $12 per unit,and the cost of carrying a unit in inventory from one month to the next is $6.
$$\begin{array} { | l | c | c | c | c | c | } \hline & \text { January } & \text { February } & \text { March } & \text { April } & \text { May } \\\hline \text { Forecast } & 400 & 800 & 1200 & 700 & 300 \\\hline \text { Beginning Inventory } & 100 & & & & \\\hline \text { Regular Time } & & & & & \\\hline \text { Overtime } & & & & & \\\hline \text { Subcontracting } & & & & & \\\hline \text { Ending Inventory } & & & & & \\\hline\end{array}$$ The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five-month window.The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week.By policy,management wants to avoid stockouts.
-Without actually solving the aggregate planning problem,it is safe to conclude that in the optimal solution to Scenario 8.2,

A) the total ending inventory will exceed the number of units made using overtime.
B) the number of units made using subcontracting will exceed the number of units made using overtime.
C) the number of units made using regular time will exceed the forecast.
D) the number of units made using subcontracting will exceed the number of units made using regular time.