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Question - Filtron Corporation produces filtration containers used in water treatment systems. Although business
has been growing, the demand each month varies considerably. As a result, the company utilizes a
mix of part-time and full-time employees to meet production demands. Although this approach
provides Filtron with great flexibility, it resulted in increased costs and morale problems among
employees. For instance, if Filtron needs to increase production from one month to the next,
additional part-time employees have to be hired and trained, and costs go up. If Filtron has to
decrease production, the workforce has to be reduced and Filtron incurs additional costs in terms of
unemployment benefits and decreased morale. Best estimates are t ...Read More

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