Production planning strategies

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Reference no: EM131126570

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. Month Demand Forecast March 2000 April 1000 May 1000 June 1000 July 1000 August 1500 September 2500 October 3000 November 9000 December 7000 January 4000 February 3000 Overtime capacity per month Regular production Subcontracting capacity per month Unlimited Regular production cost $30 per pallet Overtime production cost $40 per pallet Subcontracting cost $50 per pallet Holding cost $2 per pallet Beginning workforce 10 workers Production rate 200 pallets per worker per month Hiring cost $5000 per worker Firing cost $8000 per worker Problem 14-10. Design a production plan for Mama's Stuffin' in Problem 14.4 using linear programming and Excel Solver.

Reference no: EM131126570

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