EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175859
Author: Munson
Publisher: VST
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Chapter 13, Problem 12P

Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast:

Chapter 13, Problem 12P, Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the

John’s job is to develop an aggregate plan. The three initial options he wants to evaluate are:

Plan A: a strategy that hires and fires personnel as necessary to meet the forecast.

Plan B: a level strategy.

Plan C: a level strategy that produces 1,200 cases per quarter and meets the forecast demand with inventory and sub-contracting.

a) Which strategy is the lowest-cost plan?

b) If you are John’s boss, the VP for operations, which plan do you implement and why?

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