Supplemented with overtime and subcontracting as needed

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Reference no: EM13842743

Slopes & Sleds (S&S) makes skis, snowboards, and high- end sledding equipment. As shown below, the demand for its products is highly seasonal. The company employs 10 workers who can each produce 200 units of various equipment per month. The cost of regular production is $8 per unit, overtime $12, and subcontracting $16. Overtime is limited to regular production each period. Subcontracting is unlimited. Hiring and firing costs are $500 per worker. In- ventory holding costs are $2 per unit per month. Given the estimates of demand below, create an aggregate production plan for Slopes & Sleds using:

a. the current workforce level (supplemented with overtime and subcontracting as needed),

b. chase demand.

Reference no: EM13842743

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