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The Okra Colada An okra farm anticipates highly seasonal demand for their product, tender pods of okra that can be made into the new drink

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The Okra Colada An okra farm anticipates highly seasonal demand for their product, tender pods of okra that can be made into the new drink sensation, the okra colada. Their estimate of the demand profile appears below. This forecast is based on the demand profile of last year's drink, the tuna colada. Once everyone in the test market had actually sampled the drink, demand fell to zero. Month Demand Forecast January 1.200 February 2,400 March 3,600 April 4,800 May 2,200 June The costs for the managerial levers appear in this table. 200 Item Cost Materials cost/unit $10 Inventory holding cost/unit/month $2 Marginal cost of stockout/unit/month Hiring and training cost/worker $300 Layoff cost/worker $500 Labor hours required/unit Regular time cost/hour Over time cost/hour $6 Beginning inventory equals 1000 Ending inventory greater than 500 Marginal subcontracting cost/unit) $30 The base price per okra colada is $40 per unit and there is no promotion, but management is seriously considering different promotional plans. The beginning workforce level is 80 workers Use the Okra Colada scenario to answer this question. What is the ideal workforce level throughout January June The Okra Colada An okra farm anticipates highly seasonal demand for their product, tender pods of okra that can be made into the new drink sensation, the okra colada. Their estimate of the demand profile appears below. This forecast is based on the demand profile of last year's drink, the tuna colada. Once everyone in the test market had actually sampled the drink, demand fell to zero. Month Demand Forecast January 1.200 February 2,400 March 3,600 April 4,800 May 2,200 June The costs for the managerial levers appear in this table. 200 Item Cost Materials cost/unit $10 Inventory holding cost/unit/month $2 Marginal cost of stockout/unit/month Hiring and training cost/worker $300 Layoff cost/worker $500 Labor hours required/unit Regular time cost/hour Over time cost/hour $6 Beginning inventory equals 1000 Ending inventory greater than 500 Marginal subcontracting cost/unit) $30 The base price per okra colada is $40 per unit and there is no promotion, but management is seriously considering different promotional plans. The beginning workforce level is 80 workers Use the Okra Colada scenario to answer this question. What is the ideal workforce level throughout January June

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