Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Exercise 20

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 roduction and $1.30 during overtime.The company currently employs 25 workers.Experience shows that it costs $500 to hire a worker and $500 to fire a worker.Inventory carrying cost is $.25/ deck per month.Given the following demand estimate, develop a six-month production plan based on level production, chase by changing workforce level, and chase using overtime (if they use overtime, they will not fire anyone and will allow inventory to increase if demand is less than regular production).The beginning inventory is 50,000 and at least that amount is desired each month.