Simple zero inventory heuristic or level workforce heuristic

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The Tuscaloosa Brewing Company produces its signature brew that enjoys highly seasonal demand. Tuscaloosa Brewing Co. does not hire OM majors to solve their aggregate planning problems. You meet their Ops head at the Yellowhammer and he asks you whether he should employ a simple zero inventory heuristic or level workforce heuristic while planning production for the next three months. His hiring and firing costs are $5000 and $7000 per worker respectively, with each worker earning $3000/month capable of producing 5000 crates/month. It costs Tuscaloosa Brewing Co. $100 per 1000 crates per month to hold inventory. If initial inventory is 15000, and the forecast for demand in the next three months is 20000, 25000, and 20000 crates respectively, which of the two heuristics would you suggest he use?

Reference no: EM131439477

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