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Mama's Stuffin' is a popular food item during the fall and winter months, but it is marginal in the spring and summer. Use the following

Mama's Stuffin' is a popular food item during the fall and winter months, but it is marginal in the spring and summer. Use the following demand forecasts and costs to determine which of the following production planning strategies is best for Mama's Stuffin':

a. Level production over the 12 months.

b. Produce to meet demand each month. Absorb variations in demand by changing the size of the workforce.

c. Keep the workforce at its current level. Supplement with overtime and subcontracting as necessary.

Month

Demand Forecast

March

2000

April

1000

May

1000

June

1000

July

1000

August

1500

September

2500

October

3000

November

9000

December

7000

January

4000

February

3000

Overtime capacity per month

Regular production

Subcontracting capacity per month

Unlimited

Regular production cost

$30 per pallet

Overtime production cost

$40 per pallet

Subcontracting cost

$50 per pallet

Holding cost

$2 per pallet

Beginning workforce

10 workers

Production rate

200 pallets per worker per month

Hiring cost

$5000 per worker

Firing cost

$8000 per worker

Problem 14-10.

Design a production plan for Mama's Stuffin' in Problem 14.4 using linear programming and Excel Solver.

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