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1 3 . 1 2 Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner,

13.12 Southeast Soda Pop, Inc., has a new fruit drink for
which it has high hopes. John Mittenthal, the production planner,
has assembled the following cost data and demand forecast:
QUARTER FORECAST
11,800
21,100
31,600
4900
COSTS/OTHER DATA
Previous quarters output 51,300 cases
Beginning inventory 50 cases
Stockout cost 5 $150 per case
Inventory holding cost 5 $40 per case at end of quarter
Hiring employees 5 $40 per case
Terminating employees 5 $80 per case
Subcontracting cost 5 $60 per case
Unit cost on regular time 5 $30 per case
Overtime cost 5 $15 extra per case
Capacity on regular time 51,800 cases per quarter

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