The Good and Rich Candy Company makes a variety of candies in three factories worldwide. Its line of chocolate candies exhibits a highly seasonal demand pattern, with peaks during the winter months (for the holiday season and Valentine’s Day) and valleys during the summer months (when chocolate tends to melt and customers are watching their weight). Given the following costs and quarterly sales forecasts, determine whether (a) level production or (b) chase demand would more economically meet the demand for chocolate candies:

Quarter	Sales Forecast
Spring	80,000
Summer	50,000
Fall	120,000
Winter	150,000

Hiring cost = $100 per worker

Firing cost = $ 500 per worker

Inventory carrying cost = $0.5 per pound per quarter

Regular production cost per pound = $2.00

Production per employee = 1000 pounds per quarter

Beginning workforce = 100 workers

Answer rating: 100% (QA)

aLevel Production Strategy This strategy involves averageing out the production Ave... View the full answer