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14.5. Mama's Stuffin' is a popular food item during months, but it is marginal in the spring and summer. Use the follow- ing 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 over- time and subcontracting as necessary.

14.5. Mama's Stuffin' is a popular food item during months, but it is marginal in the spring and summer. Use the follow- ing 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 over- time and subcontracting as necessary.

Practical Management Science
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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Overtime capacity per month Subcontracting capacity per month Regular production cost Overtime production cost Subcontracting cost Holding cost Beginning workforce Production rate Regular production Unlimited $30 per pallet $40 per pallet $50 per pallet $2 per pallet 10 workers 200 pallets per worker Hiring cost Firing cost per month $5000 per worker $8000 per worker
Transcribed Image Text:Overtime capacity per month Subcontracting capacity per month Regular production cost Overtime production cost Subcontracting cost Holding cost Beginning workforce Production rate Regular production Unlimited $30 per pallet $40 per pallet $50 per pallet $2 per pallet 10 workers 200 pallets per worker Hiring cost Firing cost per month $5000 per worker $8000 per worker
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 follow- ing 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 over- time and subcontracting as necessary. Month Demand Forecast March 2000 April 1000 1000 May June 1000 July 1000 1500 August September 2500 October 3000 November 9000 December 7000 January 4000 February 3000
Transcribed Image Text: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 follow- ing 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 over- time and subcontracting as necessary. Month Demand Forecast March 2000 April 1000 1000 May June 1000 July 1000 1500 August September 2500 October 3000 November 9000 December 7000 January 4000 February 3000
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