Question: Paul’s produce ships fresh fruit from its FL distribution center to houses across the country. Demand varies significantly during the year with peaks in the fall and winter months when local fruits & veggies aren’t available. The average demand for fruit is 1000 cases in the spring, 3500 cases in summer, 4500 cases in fall and 9250 cases in winter. No inventory is held since the fruit is perishable. Paul needs to know how many workers he should hire, how much overtime he should use and how many units he should subcontract. He has gathered the following information to help in the analysis: Each worker can pack an average of 100 boxes per period at a cost of .50 cen t per box under regular production. Overtime production costs .70 cent per box and is limited to regular production. Subcontracting is unlimited at 1.00 per box. The cost to hire or fire a worker is $50.00. Paul currently employs 10 workers.

A) Design a fulfillment plan for Paul and calculate the cost of the plan.

B) How would the plan change is hiring and firing costs increased to $100? $300?