The Four Different Plans
Plan 1: Exact Production; Vary Workforce
Produce to exact monthly production requirement by varying workforce size
Plan 2: Constant Workforce; Vary Inventory and Stock-out
Produce to meet expected average demand over 6 months with constant workforce
Plan 3: Constant Low Workforce; Subcontract
Produce to meet minimum expected demand using a constant workforce. Subcontract to meet additional requirements
Plan 4: Constant Workforce; Overtime
Use overtime to meet additional output requirement