The management of Warwick Manufacturing Company is willing to give price breaks to its customers as an incentive to purchase shovels in advance of the traditional seasons. Warwick€™s sales and marketing staff estimates that the demand for shovels resulting from the price breaks would be as follows:

Calculate the optimal production plan (including the workforce staffing plan) under the new demand schedule. Compare it to the optimal production plan under the original demand schedule. Evaluate the potential effects of demandmanagement.

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Original Demand 70,000 150,000 320,000 100,000 640,000 Quarter Demand 120,000 180,000 180,000 Totals 640000