Basic information						Input for Planning	Workers per day	Hours per month,	MOS/month = 50
Carrying cost	$3.00	per unit per month				Regular	Overtime	Subcontract.
Labour input	1.6	hours per unit	Cost per unit		January	9	0	0
Regular pay rate	$10.00	per hour		$16.00		February	9	0	0
Overtime pay rate	$13.00	per hour		$20.80		March	9	0	0
Subcontracting cost	$22.00	per unit per month	$22.00		April	9	0	0
Full workday hours	8	per day				May	9	0	0
incr. daily prod. rate	$200.00	per unit for admin and training newly hired	June	9	0	0
Decr. daily prod. rate	$400.00	per unit for admin and compensating layed off	Total		0	0
Workers in December	5

Additional Restrictions
1. Hiring		the company only hires full time workers
2. Overtime		50 % of full time hours per month cannot be exceeded
3. Subcontracting		50 units per month Minimum Order Size (MOS)
4. Ending inventory		400 units maximum ending inventory capacity

Forecasting Information	Demand	Produc-tion days	Demand per day	Production per month	Inventory change	Ending inventory	Inventory cost	Labour cost	Hires and layoffs	Sub-contracting	Total cost
January	700	20	35	900	200	200	$600.00	$14,400.00	- this is what you want to find the formula for	$0.00	$15,000.00
February	595	17	35	765	170	370	$1,110.00	$12,240.00	$0.00	$0.00	$13,350.00
March	735	21	35	945	210	580	$1,740.00	$15,120.00	$0.00	$0.00	$16,860.00
April	1020	20	51	900	-120	460	$1,380.00	$14,400.00	$0.00	$0.00	$15,780.00
May	1200	22	61	990	-210	250	$750.00	$15,840.00	$0.00	$0.00	$16,590.00
June	1150	20	58	900	-250	0	$0.00	$14,400.00	$0.00	$0.00	$14,400.00
Total/Average	5400	120	45	5400	0	1860	$5,580.00	$86,400.00	$0.00	$0.00	$91,980.00

a) One important change to the basic information is that in December, 5 workers were employed on a full-time basis. Because of this, the cost of hiring more workers in January needs to be added to the total cost. Make a formula to calculate the cost of hiring more workers (and potentially laying workers off) in January.

b)The current formula in a) shows the level strategy solution (9 workers employed full time every month). Find a solution with regular work time only (no overtime and no subcontracting) that meets all four restrictions and has the lowest cost of feasible regular work only solutions. Describe your solution.

c)The current formula shows the level strategy solution (9 workers employed full time every month). Strictly implement a chase strategy in which the number of full-time workers per month is chosen that meets the lowest per day demand in a month and in which the gap between monthly production and monthly demand is filled by overtime production so that the ending inventory is zero at the end of each month. Describe the solution in the answer and comment on whether the solution is feasible.

d) The current formula shows the level strategy solution (9 workers employed full time every month). Strictly implement a chase strategy in which the number of full-time workers per month is chosen that meets the lowest per day demand in a month and in which the gap between monthly production and monthly demand is filled by subcontracting so that the ending inventory is zero at the end of each month. Describe your solution and comment on whether the solution is feasible.

Please explain with all steps