• Mark’s Combo is a popular food item during the fall and winter months, but it is marginal in the spring and summer. Using the following demand forecasts and cost and capacity data:
• Develop a plan that allows for a steady rate production over the 12 months. 
• Produce to meet demand each month, and absorb variations in demand by changing the size of the workforce.
• Which plan would more economically meet the customers’ demand?

Months	1	2	3	4		5	6	7	8	9	10	11	12
Demand Forecast	2000	1000	1000	1000		1000	1500	2500	3000	9000	7000	4000	3000
Cost and capacity data
Regular production cost					$30 per pallet
Overtime production cost					$40 per pallet
Subcontracting cost					$50 per pallet
Holding cost					$2 per pallet
Beginning workforce					10 workers
Production rate					200 pallets per worker per month
Hiring cost					$5000 per worker
Firing cost					$8000 per worker

Answer rating: 100% (QA)

SOLUTION a Total yearly demand 36000 pallets therefore average demand 36000 12 3000 Total worker nee... View the full answer