Determine a minimum inventory production plan (i.e., one that allows arbitrary hiring and firing).

b) Determine the production plan that meets demand but does not hire or fire workers during the six-month period.

c) Lets say subcontracting is allowed. Lets say we implement the constant workforce with subcontracting plan, what would the cost of subcontracting2 need to be to beat the cheaper of the two options above?

d) Using this subcontracting cost of $50, formulate a LP and solve to optimality for the constraints of this problem

Please Answer:

a) Total Cost

b) Total Cost

c) Subcontracting cost per unit

d) Total Cost

Problem 12 The personnel department of the A&M Corporation wants Month to know how many workers will be needed each month for Forecasted Demand the next six-month production period. The following is a 1,250 monthly demand forecast for the six-month period. August 1,100 September 950 The inventory on hand at the end of June was 500 units October 900 Each unit requires five employee-hours to produce, there November 1,000 December 1,150 are 20 working days each month, and each employee works an eight-hour day. The workforce at the end of June was 35 workers. It costs $500 for each worker hired. Severance pay amounts to $1000 per worker. Each employee get paid $8.00 per hour. It costs $10 per month to hold each unit of inventory. Overtime is NOT allowed. HINT: Determine K in terms of units per day per worker Part A: Total Cost (round up to next integer): Part B: Total Cost (round up to next integer): Part C: Subcontracting cost per unit (round to 2 decimal places): Part D: Total Cost (round up to next integer)