The Academic Company mixes and bottles a high-energy beverage in various container types and sizes for college students. The aggregate forecast for the next four quarters (1 year) in thousands of gallons is as follows:
Table 1

\begin{array} { | l | l | } \hline \text { QUARTER } & \begin{array} { l } \text { FORECAST DEMAND PER } \\1,000 \text { GALLONS }\end{array} \\\hline 1 & 400 \\\hline 2 & 700 \\\hline 3 & 850 \\\hline 4 & 650 \\\hline \text { TOTAL: } & 2,600 \\\hline\end{array}

Academic's management makes the following assumptions:

\bullet

Each employee works 550 standard hours of regular time each quarter.

\bullet

On average, it takes 27 hours to produce and package 1 unit (1,000 gallons).

\bullet

Regular-time labor costs $6.00/hour; overtime labor costs $9.00/hour.

\bullet

Inventory-holding cost is approximately $4.50/unit (1,000 gallons) per quarter based upon the ending inventory per quarter.

\bullet

Because of extremely hot weather, there is no beginning inventory available to start Quarter 1.

\bullet

Management wants a constant work force (no hiring or firing).

\bullet

Managers have also decided to always round up the number of employees needed to the next whole integer, i.e., 37.2 yields 38 employees.
______________________________________________________________________________
-Using the data in Table 1, if management will allow a maximum of 30 percent overtime, how many workers are needed for Quarter 3?
A) 29
B) 33
C) 35
D) 40

All of the Following Statements Are True Regarding Dependent Demand

Multiple Choice

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