1. Rowley Apparel, manufacturer of the famous “Race-ARama” swimwear line, needs help planning production for next year. Demand for swimwear follows a seasonal pattern, as shown here. Given the following costs and demand forecasts, test these four strategies for meeting demand:
a. Level production with overtime and subcontracting, as needed,
b. level production with backorders as needed,
c. chase demand, and
d. 3000 units of regular production from April through September and as much regular, overtime, and subcontracting production in the other months as needed to meet annual demand.
e. Determine the cost of each strategy. Which strategy would you recommend?