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Slopes & Sleds (S&S) makes skis, snowboards, and high- end sledding equipment. As shown below, the demand for its products is highly seasonal. The company
Slopes & Sleds (S&S) makes skis, snowboards, and high- end sledding equipment. As shown below, the demand for its products is highly seasonal. The company employs 10 workers who can each produce 200 units of various equipment per month. The cost of regular production is $8 per unit, overtime $12, and subcontracting $16. Overtime is limited to regular production each period. Subcontracting is unlimited. Hiring and firing costs are $500 per worker. In- ventory holding costs are $2 per unit per month. Given the estimates of demand below, create an aggregate production plan for Slopes & Sleds using: Plan A; Pure Level tragedy (by changing inventory level only) Plan B: The current workforce level (supplemented with overtime and subcontracting as needed) Plan C: Pure Chase strategy. Which plan is the best one? Month Demand January 6400 Fenruary 7000 March 1500 April 500 May 600 June 1400 July 1600 August 2000 Septenber 1400 October 1500 November 5200 December 6900
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