Based on your analysis in the previous section, as an Operational Manager write a brief report for the business owner. For full marks you must include the following: 1. Explain what each of the costs are in each of the seasons. Explain what causes the difference in the costs among the seasons [5 marks) 2. Identify your areas of concerns and explain why they are a concern for this business Ensure to focus on both cost and non-cost related issues. [5 marks] 3. As a consultant, itemize 5 recommendations to this business to help reduce its costs. (10 marks] Develop a production plan and calculate the annual cost for a firm whose demand forecast is: fall, 10,700, winter, 8,300, spring, 6,900, summer, 12,700. Inventory at the beginning of fall is 535 units. At the beginning of fall you currently have 35 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 stock-outs at the end of those quarters Overtime is not available during the fall. Relevant costs are hiring, $110 for each temp, layoff $220 for each worker laid off, Inventory holding $5 per unit-quarter, backorder, $10 per unit, regular 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. In each quarter produce to the full output of your regular workforce, even if that results in excess production. In Winter and Spring, use overtime only if needed to meet the production required in that quarter. Do not use overtime to build excess inventory in prior seasons expressly for the purpose of reducing the number of temp workers in Summer. (Leave the cells blank, whenever zero (0) is required. Negative values should be indicated by a minus sign. Round up "Number of temp workers, Workers hired and Workers laid off" to the next whole number and all other answers to the nearest whole number.) Fall Forecast Beginning inventory Production required Production hours required Production hours available Overtime hours Tomp workers Temp worker hours available 10.700 535 10.165 20,330 16,800 Winter 8,300 1,765 10.065 20.130 16.800 3.330 0 Spring 6,900 0 6.900 13.800 16,800 Summer 12.700 1,500 14.200 28.400 16.800 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Temp workers Temp worker hours available Total hours available Actual production Ending inventory Workers hired Workers laid off 16,800 8,400 -1,765 0 20,130 10,065 16,800 8,400 1,500 16,800 14,200 0 0 0 0 0 25 1 0 0 25 $ Regular time Overtime Inventory Backorder Hiring Layoff Total Annual cost Fall Winter Spring Summer 84,000 $ 84,000 $ 84,000 $ 142,000 0 26,640 0 0 0 7,500 17,650 0 0 0 0 0 2.750 0 0 0 5,500 101,650 $ 110.640 $ 91.500 S 150,250 $ 454,040 Based on your analysis in the previous section, as an Operational Manager write a brief report for the business owner. For full marks you must include the following: 1. Explain what each of the costs are in each of the seasons Explain what causes the difference in the costs among the seasons. (5 marks] 2. Identify your areas of concerns and explain why they are a concern for this business. Ensure to focus on both cost and non-cost related issues [5 marks] 3. As a consultant, itemize 5 recommendations to this business to help reduce its costs. [10 marks]