Question
Demand for Quantum Corporation's action toy series follows a seasonal pattern as shown below: Month Demand (cases) January 1000 February 200 March 200 April 400
Demand for Quantum Corporation's action toy series follows a seasonal pattern as shown below: Month Demand (cases) January 1000 February 200 March 200 April 400 May 400 June 500 July 900 August 400 September 1000 October 1500 November 2500 December 3000 Each worker can produce 100 cases of toys each month. Overtime is limited to 300 cases, and subcontracting is unlimited. No toys are currently in inventory. The wage rate is $10 per case for regular production, $15 for overtime production, and $25 for subcontracting. No stock outs are allowed. Holding cost is $1 per case. Increasing the workforce costs approximately $1,000 per worker. Decreasing the work force costs $500 per worker. Test the following: Level production with no overtime and no subcontracting Chase demand production with no overtime and no subcontracting. Increase or decrease the workforce in five-worker increments
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