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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: John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: - Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. - Plan B: a level strategy. - Plan C: a level strategy that produces 1,200 cases per quarter and meets the forecast demand with inventory and subcontracting. a. Which strategy is the lowest-cost plan? b. If you are John's boss, the VP for operations, which plan do you implement and why? Pxx
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