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 13.9) is considering two more mixed strategies. Using the data in Problem 13.9, 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 1000 units up to a steady 1,200 units per month. Use overtime up to a maximum of 300 units per month. All remaining demand is to be met using a subcontractor. The cost of overtime is at a premium of $40 per unit. Plan D: Keep the current workforce at a level capable of producing 1,200 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 1800 units per month. Where necessary use inventory to absorb any additional stock.

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