Question: Based on your linear programming of this problem, do you have any recommendations? To: You Cc: Onion Team From: Charles Subject: Onion Cola Hi !

Based on your linear programming of this problem, do you have any recommendations?
To: You
Cc: Onion Team
From: Charles
Subject: Onion Cola
Hi! I created a demand forecast based on the Salmon Vanilla product launch last year.
Month
Demand Forecast
January
1,200
February
2,400
March
3,600
April
4,800
May
2,200
June
200
To: You
Cc: Onion Team
From: Luis
Subject: Onion Cola
I put together that summary of managerial levers you asked me for.
Item
Cost
Materials cost/unit
$10
Inventory holding cost/unit/month
$2
Marginal cost of stockout/unit/month
$5
Hiring and training cost/worker
$300
Layoff cost/worker
$500
Labor hours required/unit
4
Regular time cost/hour
$4
Overtime cost/hour
$6
Beginning inventory equals
1000
Ending inventory greater than
500
Marginal subcontracting cost/unit
$30
What do you recommend to The Big Boss?
Group of answer choices
Consider layoffs to reach the ideal workforce level.
Consider overtime for all staff. (I picked this because this costs around 40k and subcontracts costs 50k)
Consider subcontracts to meet increased demand.
Consider hiring more staff.

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