Question
You have just been made the production manager for Big Mike's Totally Awesome Snowboards (BMTAS) a company that focuses on the design and crafting of
You have just been made the production manager for Big Mike's Totally Awesome Snowboards (BMTAS) a company that focuses on the design and crafting of the greatest snowboards on the planet. Big Mike is projecting that this upcoming winter season is going to be twice as good as the one just finishing up, with that in mind, he asked you to determine how many "snowboard creation artists" (that is the term Big Mike insists on using to refer to the production workers) will BMTAS need to meet his demand forecast.
Demand for last year by quarter was: Summer 50, Fall 350, Winter 500, and Spring 150.
Each Snowboard Creation Artist (SCA) has a fully burdened cost of $33,000 a quarter (company provided on site doggie day care is a requirement for BMTAS to provide) and it costs $2,500 to hire a new SCA, and $1,000 to fire a SCA. Currently, BMTAS has a total of 10 SCAs and each SCA can make only 20 snowboards a quarter.
Each snowboard kept in the warehouse and therefore not fulfilling its destiny on the slopes costs BMTAS $100 in storage costs.
Using the information provided above format it as a linear program (3 points) and find the optimal cost, how many workers does BMTAS have each quarter, and how many snowboards are in storage each quarter (1 point).
Lastly, based on your analysis, what would you suggest to Big Mike to change about the company's policies (1 point)?
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