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Q. Slopes & Sleds makes skis, snowboards also high end sledding equipment. As shown below, the demand for its products is highly seasonal. The organization employs 10 employees who can each produce 200 units of various equipments per month. The cost of regular production is $8 per unit; overtime $12 also subcontracting $16. Overtime is limited to regular production each period. Hiring also firing costs are $500 per employee. Inventory holding costs are $2 per unit per month. Given the estimates of demand below, create an aggregate production plan for Slopes also Sleds utilizing:
a. the current workforce level (supplemented with overtime also subcontracting as needed).
b. chase demand
Month Demand Jan 6400Feb 7000March 1500April 500May 600June 1400July 1600Aug 2000Sept 1400Oct 1500Nov 5200Dec 6900
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