Question: The S&OP team ( see Problem 1 3 . 9 ) is considering two more mixed strategies. Using the data in Problem 1 3 .
The S&OP team see Problem is considering two more mixed strategies. Using the data in Problem compare Plans C and D with Plans A and B and make recommendations.
Plan C: Increase the workforce to bring production from cur rent levels of units up to a steady units per month. Use overtime up to a maximum of units per month. All remaining demand is to be met using a subcontractor. The cost of overtime is at a premium of $ per unit. Plan D: Keep the current workforce at a level capable of producing units for the months of July up to and in cluding September. At the beginning of October hire addi tional workers to bring capacity up to units per month. Where necessary use inventory to absorb any additional stock.
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