Determine the cost of each strategy. which strategy would you


Rowley Apparel, manufacturer of the renowned "Race-A-Rama" swimwear course, needs succor planning evolution for next year. Ask-for for swimwear follows a seasonal model, as shown less. Given the aftercited absorbs and ask-for forecasts, touchstone these indecent strategies for parley ask-for: (a) plane evolution after a while overtime and subcontracting, as needed, (b) plane evolution after a while backorders as needed, (c) prosecute ask-for, and (d) 3000 units systematic evolution from April through September and as ample systematic, overtime, and subcontracting evolution in the other months as needed to coalesce annual ask-for. Determine the absorb of each policy. Which policy would you confide?

Month

Demand Forecast

January

1000

February

500

March

500

April

2000

May

3000

June

4000

July

5000

August

3000

September

1000

October

500

November

500

December

3000

 

Beginning workforce

8 workers

Subcontracting capacity

unlimited

Overtime capacity

2000 units/month

Production scold per worker

250 units/month

Regular wage scold

$15 per unit

Overtime wage scold

$25 per unit

Subcontracting absorb

$30 per unit

Hiring absorb

$100 per worker

Firing absorb

$200 per worker

Holding absorb

$0.50 per unit/month

Backordering absorb

$10 per unit/month