$2.$ Suppose that Ivar Jorgenson, a head operations planner for Bi$-$Product Company, finds out that the long$-$range forecast was revised by the growing economy. As a result, the marketing department at Bi$-$Product Company raises its forecast for quarter $2,3$ and $4$ sales of Product to $7000,6500$ and $7000$ units respectively. He will now have to develop and analyze several alternative level plans for next year.

Keep in mind that each of these plans must consider:

$$Beginning inventory of $1,000$ units of Product A and $500$ units of Product B$.$

$$Ending inventory and baek orde

must be zero

$-$ Each plan must have the same level total$-$output rate each quarter.

$$Develop a level play that uses overtime by regular, full$-$time employees to meet the new demand conditions $($with no additional hiring$).$ Calculate the total annual cost of this plan.

$$Develop a second plan that will use regular employees $($no overtime$)$ plus subcultractitol mua the new demand conditions $($with no additional hiring$).$ c Another posite ould arto hire adie fil i employerson anary and

and part$-$time are not allowed$)$

d$.$ What would you suggest to Ivar Jorgenson for the best plan? Why?$2.$ Suppose that Ivar Jorgenson, a head operations planner for Bi$-$Product Company, finds out that the long$-$range forecast was revised by the growing economy. As a result, the marketing department at Bi$-$Product Company raises its forecast for quarter $2,3$ and $4$ sales of Product to $7000,6500$ and $7000$ units respectively. He will now have to develop and analyze several alternative level plans for next year.

Keep in mind that each of these plans must consider:

$$Beginning inventory of $1,000$ units of Product A and $500$ units of Product B$.$

$$Ending inventory and baek orde

must be zero

$-$ Each plan must have the same level total$-$output rate each quarter.

$$Develop a level play that uses overtime by regular, full$-$time employees to meet the new demand conditions $($with no additional hiring$).$ Calculate the total annual cost of this plan.

$$Develop a second plan that will use regular employees $($no overtime$)$ plus subcultractitol mua the new demand conditions $($with no additional hiring$).$ c Another posite ould arto hire adie fil i employerson anary and

and part$-$time are not allowed$)$

d$.$ What would you suggest to Ivar Jorgenson for the best plan? Why?