14.5. Mama’s Stuffin’ is a popular food item during the fall and winter months, but it is marginal in the spring and summer. Use the following demand forecasts and costs to determine which of the following production planning strategies is best for Mama’s Stuffin’: a. Level production over the 12 months. b. Produce to meet demand each month. Absorb variations in demand by changing the size of the workforce. c. Keep the workforce at its current level. Supplement with overtime and subcontracting as necessary.
14.5. Mama’s Stuffin’ is a popular food item during the fall and winter months, but it is marginal in the spring and summer. Use the following demand forecasts and costs to determine which of the following production planning strategies is best for Mama’s Stuffin’: a. Level production over the 12 months. b. Produce to meet demand each month. Absorb variations in demand by changing the size of the workforce. c. Keep the workforce at its current level. Supplement with overtime and subcontracting as necessary.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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14.5. Mama’s Stuffin’ is a popular food item during the fall and winter months, but it is marginal in the spring and summer. Use the following demand
a. Level production over the 12 months.
b. Produce to meet demand each month. Absorb variations in demand by changing the size of the workforce.
c. Keep the workforce at its current level. Supplement with overtime and subcontracting as necessary.
Transcribed Image Text:Overtime capacity per month
Subcontracting capacity per month Unlimited
Regular production cost
Overtime production cost
Subcontracting cost
Holding cost
Beginning workforce
Production rate
Regular production
Hiring cost
Firing cost
$30 per pallet
$40 per pallet
$50 per pallet
$2 per pallet
10 workers
200 pallets per worker per month
$5000 per worker
$8000 per worker
Transcribed Image Text:Month
March
April
May
June
July
August
September
October
November
December
January
February
Demand Forecast
2000
1000
1000
1000
1000
1500
2500
3000
9000
7000
4000
3000
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