Q.61. Capacities of production of an item over 3 consecutive months in regular time are 100, 100 and 80 and in overtime are 20, 20 and 40. The demands over those 3 months are 90, 130 and 110. The cost of production in regular time and overtime are respectively Rs. 20 per item and Rs. 24 per item. Inventory carrying cost is Rs. 2 per item per month. The levels of starting and final inventory are nit. Backorder is not permitted. For minimum cost of plan, the level of planned production in overtime in the third month is
(A) 40
(B) 30
(C) 20
(D) 0
Answer: (B)
Explanation:
