JokersRWild makes playing cards in several different styles, but a "standard" deck of cards is used for planning purposes. The average worker at JokersRWild can make 10,000 sets of decks of cards per month at a cost of $1.00 per deck during regular pro- duction and $1.30 during overtime. The company currently employs 25 workers. Expe- rience shows that it costs $500 to hire a worker and $500 to fire a worker. Inventory carrying cost is $.25 per deck per month. Given the following demand estimate, develop a six-month production plan based on level production, chase using overtime (no workers will be fired and inventory increases if necessary), and chase by changing workforce level. The beginning inventory is 50,000, and at least that amount is desired each month.
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Month
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January
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February
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March
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April
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May
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June
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Demand
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200,000
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150,000
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200,000
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400,000
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550,000
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250,000
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