Cost data

Regular time labor cost per hour $10.00

Overtime labor cost per hour $15.00

Hiring cost per employee $84.00

Firing cost per employee $100.00

Inventory holding cost per unit per period $20.00

Shortage cost per unit per period $600.00

Material cost per unit $450.00

Capacity data

Beginning workforce (employees) 200

Beginning inventory (units) 400

Labor standard per unit (hours) 6

Regular time hours available per period per employee 160

Overtime hours available per period per employee 32

Demand data

November 6000 December 5000 January 7000 February 5000 March 6000 April 5000

1. Use the data above and do a level strategy using inventory and backorders (5 steps) (9 points)

2. Use the data above and do a chase strategy using hiring and firing (5 steps) (6 points) (Note: if your calculations for # of employees are not whole numbers, please round up to be whole number)