Question: QUESTION #1 A. Based on the forecasted demand and cost information provided, decide which of the following the most appropriate planning strategy for Sweet-Pedas Caf:

QUESTION #1 A. Based on the forecasted demand and

QUESTION #1 A. Based on the forecasted demand and cost information provided, decide which of the following the most appropriate planning strategy for Sweet-Pedas Caf: 1) Use a strategy with permanent of 6 workers with a support of overtime not more than 2 workers, and back ordering but no subcontracting is allowed. Jan 400 Feb 500 March 600 April 900 May 1100 June 700 Current work force 9 workers Production per worker 100 units per month Inventory holding cost $0.30 per unit per month Regular wage rate $20.00 per unit Overtime wage rate $30.00 per unit Sub-contracting wage rate $40.00 per unit Back-ordering wage rate $50.00 per unit Hiring cost $500 per worker Firing cost $800 per worker Beginning inventory 100 units Regular Ending Back Month Demand OT S/K Production Inventory order Workers H F j F M A j TOTAL Costs

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