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Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost
Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast:
LOADING... Click the icon to view the demand forecast.
LOADING... Click the icon to view the cost data.
Johns job is to develop an aggregate plan. The three initial options he wants to evaluate are:
bullet Plan A: a strategy that hires and fires personnel as necessary to meet the forecast.
bullet Plan B: a level strategy.
bullet Plan C: a level strategy that produces comma cases per quarter and meets the forecast demand with inventory and subcontracting.
Part
a Which strategy is the lowestcost plan?
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