Refer to Example 17.1. Suppose the company€™s manufacturing plant was shut down during February and March due to a labor strike. Nonetheless, demand for those 2 months still had to be met. The company had the options of using subcontracting and backorders to meet demand. A maximum of 1,000 pairs of skis can be subcontracted and a maximum of 1,000 pairs of skis can be backordered for those 2 months. The cost of backorders is $30/pair/month. All other planning values given in Example 17.1 remain the same. Develop a least-cost sales and operations plan for the 12-month planning horizon.

Data from Example 17.1

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DEMAND (IN PAIRS OF UNITS) MONTH MONTH DEMAND (IN PAIRS OF UNITS) July Jan 9,000 1,000 7,000 5,000 Feb Aug 1,200 Mar 1,600 Sept 4,000 Apr 3,000 Oct 2,000 5,700 May Nov 7,000 1,500 June Dec