Develop a production plan and calculate the annual cost for a firm whose demand forecast Is: fall, 10,500: winter, 8.400; spring, 6.800; summer, 12,000. Inventory at the beginning of fall is 525 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 unlon 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. $90 for each temp: layoff, $180 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 Winter 8,400 10,500 525 Spring 6,800 0 8,800 Summer 12,000 1,600 10,400 20.800 16.800 9,975 -1,575 9.975 19,950 16,800 3,150 19,950 18.800 13,600 18.800 0 Forecast Beginning inventory Production required Production hours required Production hours available Overtime hours Temp workers Temp worker hours available Total hours available Actual production Ending inventory Workers hired Workers laid off 0 0 0 9 0 0 0 4,320 18.800 16,800 8,400 - 1,575 19,950 9,975 0 8.400 21,120 10.560 160 1,600 0 0 0 Fall Spring S 84.000 S Winter $ 84.000 25,200 84,000 Summer S 105,600 0 800 0 0 0 Regular time Overtime Inventory Backorder Hiring Layoff Total 0 8.000 0 15,750 0 0 0 0 810 0 0 0 S 99,750 s 109,200 S 92.000 S 0 107,210 408,160 Annual cost S 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]