ABC Inc.docx - ABC Inc is a manufacturer of sensible shoes...

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ABC Inc. is a manufacturer of sensible shoes for aging baby-boomers. The company is having great success. Although demand is seasonal, it is expected to increase steadily over the next few years. The company is purchasing a new facility to accommodate the increase in demand. However, the facility will not open until 13 months from now. The current facility can only accommodate a maximum of 15 workers. Using the information below, help ABC Inc. manage this transition year by deriving a production plan that will meet demand at the lowest cost. With the limited workforce size, use of overtime and subcontracting are options to consider.MonthForecast (inpairs)May3,000June3,000July2,200August2,200Sept4,000Oct4,000Nov2,200Dec3,000Beginning inventory: 0Beginning workforce: 8 workersEmployee productivity : 100 pairs / worker / monthRegular time capacity: maximum of 15 workersOvertime capacity: half of regular time production

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