Forward demand for game girls de mand fore cast

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Unformatted text preview: For Game Girls De mand Fore cast 500,000 Base Case 300,000 Sandra's Plan 200,000 Bill's Plan 100,000 be De ce m m ve Month r r be er No Oc to b r be em pt Se Au gu st ly 0 Ju Un i t s 400,000 Given Data Given Material Cost Inventory Holding Cost Marginal Cost of Marginal Stockout Stockout Hiring and Training Cost Layoff Cost Labor Hours Required Regular Time Cost Over time Cost Cost of Subcontracting $12/ unit $4/ unit/ month $10/ unit/ month $3000/ worker $5000/ worker .25/ unit $15 / hr $22.50/ hr $18/ unit Questions??? Questions??? Which of the 3 options maximizes Which profit – Sandra’s, Bill’s or no promotion? profit If the subcontracting cost rises to If subcontracting cost $22/unit, does this change the decision $22/unit does when the discount is $5? How does the answer change if $10 discount is needed to achieve the discount is impact of $5 discount? impact Class discussion Class Ideas to solve this problem How do you apply the tools and methods How you learned? you Class discussion Class Linear Prog...
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