Question: Mama’s Stuffin is a popular food item during the fall and winter, but it is marginal in the spring and summer months. Use the following demand forecasts and costs to determine which production planning strategies is best for Mama’s Stuffin’:

A) Level production over the 12 months

B) Produce to meet demand each month. Absorb variations in demand by changing the size of the workforce.

C) Keep the workforce at its current level. Supplement with overtiMeand subcontracting as necessary.

i. Overtime capacity per month regular production

ii. Subcontracting capacity per month unlimited

iii. Regular production cost $30 per pallet

iv. Overtime production cost $ 40 per pallet

v. Subcontracting cost $ 50 per pallet

vi. Holding Cost $2 per pallet

vii. Beginning Workforce 10 workers

viii. Production Rate 200 pallets per worker per month

ix. Hiring Cost $5000 per worker

x. Firing Cost $8000 per worker