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Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000 ; winter, 8,000 ; spring, 7,000 ; summer, 12,000 . Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $100 for each temp; layoff $200 for each worker laid off, inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. a. What is the total cost for this plan? $0 \begin{tabular}{|l|c|} \hline Relevant information includes: & \multicolumn{1}{|l|}{} \\ \hline Backorder cost per unit & $10.00 \\ \hline Holding cost per unit & $5.00 \\ \hline Number of Workers & 30 \\ \hline Hiring cost per worker & $100.00 \\ \hline Layoff cost per worker & $200.00 \\ \hline Production time (hours) per unit & 2.0 \\ \hline Straight time labor cost per hour & $5.00 \\ \hline Overtime labor cost per hour & $8.00 \\ \hline Working time (hrs/day) & 8.00 \\ \hline Work days per season & 60.00 \\ \hline Beginning inventory & 500 \\ \hline \end{tabular} Aggregate Production Planning Requirements \begin{tabular}{|l|l|l|l|l|} \hline Time Period & Fall & Winter & Spring & Summer \\ \hline Forecast & & & & \\ \hline Beginning Inventory & & & & \\ \hline Production Required (Forecast - Beginning inventory) & & & & \\ \hline Production hours required (# units * Production Time per unit) & & & & \\ \hline Production hours available (# workers * # hours per day * days per season) & & & & \\ \hline Overtime hours & & & & \\ \hline Temp workers (Production hrs required Production hours available)/(Overtime cost * # days per season) rounded up & & & & \\ \hline Temp worker hours available & & & & \\ \hline Total hours available & & & & \\ \hline Actual Production (Production hrs available / Labor hrs required per unit) & & & & \\ \hline Ending Inventory (Beginning inventory + Actual production - Demand forecast) & & & & \\ \hline Workers hired & & & & \\ \hline Workers laid off & & & & \\ \hline Straight Time (Production hrs available x Straight time labor cost) & & & & \\ \hline Overtime & & & & \\ \hline Inventory cost & & & & \\ \hline Backorder cost & & & & \\ \hline Hiring cost & & & & \\ \hline Layoff cost & & & & \\ \hline Total costs & & & & \\ \hline \end{tabular}