Tameka Nicholas believes there must be a better aggregate plan. She has suggested a hybrid plan, using a permanent workforce of 195 employees and subcontracting as needed. Once again, Tameka has requested that you provide the following information:

a) Calculate the regular-time production possible each period given a workforce of 185.

b) Show what would happen if this plan were implemented.

c) Calculate the costs associated with this plan.

d) Evaluate the plan in terms of cost, customer service, operations, and human resources.

Problem Data Cost data Regular-time labor cost per hour Overtime time labor cost per hour Subcontracting cost per unit (labor only) Holding cost per unit per period Back-order cost per unit per period Hiring cost per employee Firing cost per employee Capacity data Beginning workforce Beginning inventory $12.00 $16.00 $75.00 $8.00 $15.00 $500.00 $350.00 210 400