Slopes & Sleds (S&S) makes skis, snowboards, and high-end sledding equipment. As shown below, the demand for its products is highly seasonal. The company employs 10 workers who can each produce 200 units of various equipment per month. The cost of regular production is $8 per unit, overtime $12, and subcontracting $16. Overtime is limited to regular production each period. Subcontracting is unlimited. Hiring and firing costs are $500 per worker. Inventory holding costs are $2 per unit per month. Given the estimates of demand below, create an aggregate production plan for Slopes & Sleds using:
a. The current workforce level (supplemented with overtime and subcontracting as needed),
b. Chase demand.
Month Demand
January ...........6400
February ............7000
March .............1500
April ..............500
May ............600
June .............1400
July ..............1600
August ............2000
September ..........1400
October ...........1500
November ..........5200
December ..........6900