Acme Inc. anticipates highly seasonal demand for their product, The Widget. Their estimate of the demand...

   

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Acme Inc. anticipates highly seasonal demand for their product, "The Widget". Their estimate of the demand profile and the costs for the managerial levers appear below. < Demand Forecast Month January February March April May June Demand Forecast Starting inventory Ending inventory 1,000 1,300 1,800 2,500 2,000 1,200 Max. overtime per employee per month Starting work force size Base sale price Costs Item Materials cost/unite Inventory holding cost/unit/month Marginal cost of stockout/unit/month Hiring and training cost/worker Layoff cost/worker Labor hours required/unit Regular time cost/hour Over time cost/hour Marginal subcontracting cost/unit 20 hours 80 Employees $ 55.00 1,000 500 Coste $400 + $25 $50 + $300 $500 44 $150 $200 $300 Acme Inc. anticipates highly seasonal demand for their product, "The Widget". Their estimate of the demand profile and the costs for the managerial levers appear below. < Demand Forecast Month January February March April May June Demand Forecast Starting inventory Ending inventory 1,000 1,300 1,800 2,500 2,000 1,200 Max. overtime per employee per month Starting work force size Base sale price Costs Item Materials cost/unite Inventory holding cost/unit/month Marginal cost of stockout/unit/month Hiring and training cost/worker Layoff cost/worker Labor hours required/unit Regular time cost/hour Over time cost/hour Marginal subcontracting cost/unit 20 hours 80 Employees $ 55.00 1,000 500 Coste $400 + $25 $50 + $300 $500 44 $150 $200 $300

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1 A firm can respond to predictable variability of demand in the supply chain by adjusting various supplyside levers As a manufacturer the primary sup... View the full answer