Question 1: (40 pts.) A manufacturer of the famous swimwear line needs help planning production for...

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Question 1: (40 pts.) A manufacturer of the famous swimwear line needs help planning production for next year. Demand for swimwear follows a seasonal pattern, as shown below. Given the following costs and demand forecasts Month Jan Feb Mar Apr May Jun Jul Demand 2000 1000 1000 1500 6000 8000 10000 6000 2000 1000 1000 4000 Aug Sep Oct Nov Dec Beginning workforce: 12 workers Beginning inventory: 0 Subcontracting capacity : unlimited Overtime capacity: 2000 units/month Production rate per worker : 200 units/month Regular wage rate : $10 per unit Overtime wage rate : $20 per unit Subcontracting cost : $25 per unit Hiring cost: $150 per worker Firing cost : $250 per worker Holding cost : $0.75 per unit/month Backordering cost : $5 per unit/month a. Level production with overtime and subcontracting, as needed. (10 Points) b. Level production with backorders as needed. (10 Points) c. 4000 units regular production from May through September and as much regular, over- time, and subcontracting production in the other months as needed to meet annual demand (10 Points) d. Which strategy would you recommend? (10 Points) Question 1: (40 pts.) A manufacturer of the famous swimwear line needs help planning production for next year. Demand for swimwear follows a seasonal pattern, as shown below. Given the following costs and demand forecasts Month Jan Feb Mar Apr May Jun Jul Demand 2000 1000 1000 1500 6000 8000 10000 6000 2000 1000 1000 4000 Aug Sep Oct Nov Dec Beginning workforce: 12 workers Beginning inventory: 0 Subcontracting capacity : unlimited Overtime capacity: 2000 units/month Production rate per worker : 200 units/month Regular wage rate : $10 per unit Overtime wage rate : $20 per unit Subcontracting cost : $25 per unit Hiring cost: $150 per worker Firing cost : $250 per worker Holding cost : $0.75 per unit/month Backordering cost : $5 per unit/month a. Level production with overtime and subcontracting, as needed. (10 Points) b. Level production with backorders as needed. (10 Points) c. 4000 units regular production from May through September and as much regular, over- time, and subcontracting production in the other months as needed to meet annual demand (10 Points) d. Which strategy would you recommend? (10 Points)

Answer rating: 100% (QA)

MONTH JAN FEB MARCH APRIL MAY JUNE JULY AUGUST SEP OCT NOV DEC DEMAND 2000 1000 1000 1500 6000 8000 10000 6000 2000 1000 1000 4000 Opening workforce 12 people Production rate per worker 200 unitsmonth ... View the full answer