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