A company believes that its demand for the next six months is as follows:

The output per worker per month is 100 units. The per worker hiring and lay off costs are $2000 and $3000, respectively. There is no beginning inventory, and the starting workforce is 200. It cost the company $20 to carry an item in inventory each month, and the stockout costs is estimated to be $50 per unit.
Develop a level sales and operations plan for this firm. Develop the monthly production schedule and show the labor workforce and inventory levels. Finally, compute the cost of the plan.

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Month 1 Demand 6000 8000 10,000 6000 9000 12,000 51,000 Total