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A small distiller produces whisky. The salesperson has developed the following forecasts for demand (in cases) for the next six months. LO2 Month May Jun
A small distiller produces whisky. The salesperson has developed the following forecasts for demand (in cases) for the next six months. LO2 Month May Jun Jul Aug Sep Oct Forecast 4,000 4,800 5,600 7,200 6,400 5,000 Use the following information: Regular labour cost $20 per case Regular labour capacity 5,000 cases per month using 50 workers Overtime labour cost $30 per case Part-time labour cost $40 per case Holding cost $2 per case per month Back-order cost $10 per case per month Beginning inventory 0 Develop the minimum cost production plan using level output/workforce, supplemented with each of the following, and compute the total cost for each plan. Which plan has lower total cost? Page 483 a. Use overtime (up
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