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The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent Mideast operation. Working the normal two shifts of 40 hours, the BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. Seventy employees work the first shift and 30 the second. The contract price is $200 per uniform. Because of the urgent need, BBBC is authorized to use around-the-clock production, six days per week. When each of the two shifts works 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M980310

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