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n 9000 Q2 (7 points). A company needs help planning production for next year. Demand for swimwear follows a seasonal pattern, as shown here. Given
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9000 Q2 (7 points). A company needs help planning production for next year. Demand for swimwear follows a seasonal pattern, as shown here. Given the following costs and demand forecasts, test these three strategies for meeting demands: a). level production with overtime and subcontracting b). level production with backorders b) chase demand Which strategy would you recommend? Quarter Demand 1 2000 2 3 9000 4 4000 Beginning workforce 8 works Subcontracting capacity: unlimited Overtime capacity: 6000 units/Q Production rate per worker: 750 units/Q (750*8 - 6000 units/Q) Production cost: 15 per unit Overtime cost: 25 per unit Subcontracting cost: 30 per unit Hiring cost: 100 Firing cost: 200 (Inventory) Holding cost: 1.5 per unit Backorder cost: 30 per unit/ Step by Step Solution
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