2) Use a mixed method strategy; Jan - June, use level production with OT and S/K not more than a worker and BKO as needed. While July - October, use chase production and workers as needed. (5 MARKS) Feb Jan 3000 6000 March 7000 Apr 3000 May 5000 June 6000 July 7000 Aug 3000 Sept 8000 Oct 12000 Current work force Production per worker Inventory holding cost Regular wage rate Overtime wage rate Sub-contracting wage rate Backordering (BKO) Hiring cost Firing cost Beginning inventory 10 workers 500 units per month $0.50 per unit $25.00 $30.00 $40.00 $50.00 $2000 per worker $4000 per worker 1000 units Mth Demand S/K BKO Inventory Workers H Regular Production F Over Time Jan 3000 6000 Mar 7000 Apr 3000 May 5000 June 6000 July 7000 Aug 3000 Sept 8000 Oct 12000 Total 60,000 Calculate the cost: 3) Which strategy is the best? (2 MARKS)