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To: You Cc: Onion Team From: The Big Boss Subject: Onion Cola Based on your linear programming of this problem, do you have any recommendations?

To: You Cc: Onion Team From: The Big Boss Subject: Onion Cola

Based on your linear programming of this problem, do you have any recommendations?

To: You Cc: Onion Team From: Charles Subject: Onion Cola

Hi! I created a demand forecast based on the Salmon Vanilla product launch last year.

Month Demand Forecast
January 1,200
February 2,400
March 3,600
April 4,800
May 2,200
June 200

To: You Cc: Onion Team From: Luis Subject: Onion Cola

I put together that summary of managerial levers you asked me for.

Item Cost
Materials cost/unit $10
Inventory holding cost/unit/month $2
Marginal cost of stockout/unit/month $5
Hiring and training cost/worker $300
Layoff cost/worker $500
Labor hours required/unit 4
Regular time cost/hour $4
Overtime cost/hour $6
Beginning inventory equals 1000
Ending inventory greater than 500
Marginal subcontracting cost/unit $30

What do you recommend to The Big Boss?

Group of answer choices

Consider layoffs to reach the ideal workforce level.

Consider overtime for all staff.

Consider subcontracts to meet increased demand.

Consider hiring more staff.

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