Problem 9 Question Help Climate Control, Inc., makes expedition-quality rain gear for outdoor enthusiasts. Management prepared a forecast of sales in suits) for next year and now must prepare a production plan. The company has traditionally maintained a level workforce strategy. All eight workers are treated like family and have been employed by the company for a number of years. Each employee can produce 2,300 suits per month. At present, finished goods inventory holds 22,900 suits. The demand forecast follows: Month 1 2 3 4 Demand 25,500 16,500 14,500 18,500 Month 5 6 7 8 Demand 33,000 29,500 27,000 22,000 Month 9 10 11 12 Demand 14,500 18,500 19,500 5,500 a. Management is willing to authorize overtime in periods for which regular production and current levels of anticipation inventory do not satisfy demand. However, overtime must be strictly limited to no more than 20 percent of regular time capacity. Management wants to avoid stockouts and backorders and is not willing to accept a plan that calls for shortages. Assuming that overtime is only used in periods for which shortages would occur, it is not feasible to hold the workforce constant because (choose the correct answer below and fill in the free response boxes in your choice if appropriate): O A. after utilizing all regular and overtime production capacity, there are never any shortages. B. overtime is first required in month 6 and, after utilizing all regular and overtime production capacity, there is a shortage in that month of 520 suits. (Enter your responses as positive whole numbers.) b. Assume that management is not willing to authorize any overtime. Instead, management is willing to negotiate with customers so that backorders may be used as a supply option. However, management is not willing to carry more than 5,200 suits from one month to the next in backorder. Assuming that a maximum backorder of 5,200 suits may be maintained from month to month, it is not feasible to hold the workforce constant because (choose the correct answer below and fill in the free response boxes in your choice if appropriate): A. the maximum allowed backorder of 5,200 suits is first exceeded in month 7), when there is a backorder of 5440 suits. (Enter your responses as positive whole numbers.) OB. backorders never exceed the maximum allowed backorder of 5,200 suits. Click to select and enter your answer(s) and then click Check Answer. ? Problem 9 Question Help Climate Control, Inc., makes expedition-quality rain gear for outdoor enthusiasts. Management prepared a forecast of sales in suits) for next year and now must prepare a production plan. The company has traditionally maintained a level workforce strategy. All eight workers are treated like family and have been employed by the company for a number of years. Each employee can produce 2,300 suits per month. At present, finished goods inventory holds 22,900 suits. The demand forecast follows: Month 1 2 3 4 Demand 25,500 16,500 14,500 18,500 Month 5 6 7 8 Demand 33,000 29,500 27,000 22,000 Month 9 10 11 12 Demand 14,500 18,500 19,500 5,500 a. Management is willing to authorize overtime in periods for which regular production and current levels of anticipation inventory do not satisfy demand. However, overtime must be strictly limited to no more than 20 percent of regular time capacity. Management wants to avoid stockouts and backorders and is not willing to accept a plan that calls for shortages. Assuming that overtime is only used in periods for which shortages would occur, it is not feasible to hold the workforce constant because (choose the correct answer below and fill in the free response boxes in your choice if appropriate): O A. after utilizing all regular and overtime production capacity, there are never any shortages. B. overtime is first required in month 6 and, after utilizing all regular and overtime production capacity, there is a shortage in that month of 520 suits. (Enter your responses as positive whole numbers.) b. Assume that management is not willing to authorize any overtime. Instead, management is willing to negotiate with customers so that backorders may be used as a supply option. However, management is not willing to carry more than 5,200 suits from one month to the next in backorder. Assuming that a maximum backorder of 5,200 suits may be maintained from month to month, it is not feasible to hold the workforce constant because (choose the correct answer below and fill in the free response boxes in your choice if appropriate): A. the maximum allowed backorder of 5,200 suits is first exceeded in month 7), when there is a backorder of 5440 suits. (Enter your responses as positive whole numbers.) OB. backorders never exceed the maximum allowed backorder of 5,200 suits. Click to select and enter your answer(s) and then click Check