Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,200, Winter, 7700: spring, 6700, summer, 12.200. Inventory at the beginning of fall is 510 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 only if overtime is necessary to prevent stockouts 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, straight 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 no cells blank - be certain to enter "0" wherever 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.) Forecast Beginning inventory Production required Production hours required Production hours available Overtime hours Tomp workers Temp worker hours available Answer is complete but not entirely correct. Fall Winter Spring Summer 10.200 7.700 6,700 12,200 510 037003 2.400 9.000 7.700 % 6,000 & 9,800 19,380 15,400 12,000 3 19,600 16,800 16,800 16,800 16,800 0 03 0 0 0 0 0 6% 0 0 0 2.880 Onn ON Prev 1 of 3 III Next > 1 > Total hours available Actual production Ending inventory Workers hired Workers laid off 16,800 8.400 0 16,800 8,400 700 X 16,800 8,400 2,400 0 XO 19,680 9,840 40 x 0X 6% o O 0 o o 0 0 0 > Straight time Overtime Inventory Backorder Hiring Layoff > >> & Answer is complete but not entirely correct. Fall Winter Spring Summer S 84,000 S84,000 84,000 $ 84,000 0 x 0 3,500 $ 12,000 2004 12,900 0 0 0 0 0 0 0 0 1,080 S $96,000 96,900 87.500 $ 85,820 540 >> X x Total Annual cost 366,220