2. Use a mixed method strategy; Jan April, use level production with oT and S/K not more than 2 workers and BKO as needed. While May - December, use permanent workers of 8, OT and S/K not more than 2 workers and BKO as needed. Jan Feb March Apr May June July July Aug Sept Oct Nov Dec 4000 8000 6000 2000 7000 2000 5000 6000 8000 3000 2000 7000 Current work force Production per worker Inventory holding cost Regular wage rate Overtime wage rate Sub-contracting wage rate Back ordering Hiring cost Firing cost Beginning inventory 12 workers 500 units per month $0.30 per unit $20.00 $30.00 $40.00 $50.00 $1500 per worker $3000 per worker 500 units Mth Demand S/K Inventory BKO Worker(s) H F WA Regular Prod Over Time 4000 Jan Feb 8000 Mar 6000 Apr 2000 May 7000 June 2000 July 5000 Aug 6000 Sept 8000 Oct 3000 Nov 2000 Dec 7000 Total cost Cost