Climate Control, Inc., makes expedition-quality rain gear for outdoor enthusiasts. Management prepared a forecast of sales (in suits) for next year and now must prepare a production plan. The company has traditionally maintained a level workforce strategy. All nine workers are treated like family and have been employed by the company for a number of years. Each employee can produce 1,900 suits per month. At present, finished goods inventory holds 21,900 suits. The demand forecast follows: Month Demand Month Demand Month Demand 1 23,000 5 29,500 9 13,000 2 15,500 6 28,000 10 14,500 3 13,500 7 25,000 11 19,000 Assuming that overtime is only used in periods for which shortages would occur, it answer below and fill in the free response boxes in your choice if appropriate) 4 19,000 8 20,500 12 5,000 a. Management is willing to authorize overtime in periods for which regular production and current levels of anticipation inventory do not satisfy demand. However, overtime must be strictly limited to no more than 20 percent of regular time capacity. Management wants to avoid stockouts and backorders and is not willing to accept a plan that calls for shortages. feasible to hold the workforce constant because (choose the correct

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Author:R. David Gustafson, Jeff Hughes
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Climate Control, Inc., makes expedition-quality rain gear for outdoor enthusiasts. Management prepared a forecast of sales (in suits) for next year and now must
prepare a production plan. The company has traditionally maintained a level workforce strategy. All nine workers are treated like family and have been employed by
the company for a number of years. Each employee can produce 1,900 suits per month. At present, finished goods inventory holds 21,900 suits. The demand forecast
follows:
Month
Demand
Month
Demand
Month
Demand
1
23,000
5
29,500
9
13,000
2
15,500
6
28,000
10
14,500
3
13,500
Assuming that overtime is only used in periods for which shortages would occur, it
answer below and fill in the free response boxes in your choice if appropriate)
7
25,000
11
19,000
D
4
19,000
8
20,500
12
5,000
a. Management is willing to authorize overtime in periods for which regular production and current levels of anticipation inventory do not satisfy demand. However,
overtime must be strictly limited to no more than 20 percent of regular time capacity. Management wants to avoid stockouts and backorders and is not willing to
accept a plan that calls for shortages.
feasible to hold the workforce constant because (choose the correct
OA overtime is first required in month and, after utilizing all regular and overtime production capacity, there is a shortage in that month of
your responses as positive whole numbers)
OB. after utilizing all regular and overtime production capacity, there are never any shortages
suits. (Enter
Transcribed Image Text:Climate Control, Inc., makes expedition-quality rain gear for outdoor enthusiasts. Management prepared a forecast of sales (in suits) for next year and now must prepare a production plan. The company has traditionally maintained a level workforce strategy. All nine workers are treated like family and have been employed by the company for a number of years. Each employee can produce 1,900 suits per month. At present, finished goods inventory holds 21,900 suits. The demand forecast follows: Month Demand Month Demand Month Demand 1 23,000 5 29,500 9 13,000 2 15,500 6 28,000 10 14,500 3 13,500 Assuming that overtime is only used in periods for which shortages would occur, it answer below and fill in the free response boxes in your choice if appropriate) 7 25,000 11 19,000 D 4 19,000 8 20,500 12 5,000 a. Management is willing to authorize overtime in periods for which regular production and current levels of anticipation inventory do not satisfy demand. However, overtime must be strictly limited to no more than 20 percent of regular time capacity. Management wants to avoid stockouts and backorders and is not willing to accept a plan that calls for shortages. feasible to hold the workforce constant because (choose the correct OA overtime is first required in month and, after utilizing all regular and overtime production capacity, there is a shortage in that month of your responses as positive whole numbers) OB. after utilizing all regular and overtime production capacity, there are never any shortages suits. (Enter
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