Question

36. The Yeasty Brewing Company produces a popular local beer known as Iron Stomach. Beer sales are somewhat seasonal, and Yeasty is planning its production and workforce levels on March 31 for the next six months. The demand forecasts are as follows: Production Days Forecasted Demand (in hundreds of cases) 85 Month April May June July August September 122 176 140 20 63 As of March 31, Yeasty had 86 workers on the payroll. Over a period of 26 work- ing days when there were 100 workers on the payroll, Yeasty produced 12,000 cases of beer. The cost to hire each worker is $125 and the cost of laying of each worker is $300. Holding costs amount to 75 cents per case per month. As of March 31, Yeasty expects to have 4,500 cases of beer in stock, and it wants to maintain a minimum buffer inventory of 1,000 cases each month. It plans to start October with 3,000 cases on hand.

Answer 1

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