Question: You are a manufacturer of skis, the demand for which is given below
| Month |
Demand |
| October |
500 |
| November |
1000 |
| December |
2200 |
| January |
1300 |
| February |
800 |
| March |
200 |
An employee can make one ski every two hours, it costs $1100 to hire someone, $2100 to fire someone. Stoarage costs are $10 per ski per month and out of stock cost is $6 per ski per month. You start with 10 employees in the chase production scenario and start with the correct (needed) number of employees for the level.
Considering only these months of the year, which produciton scheme (level or chase) is better? Why? What assumptions are in this example?