Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,300; winter, 8,200; spring, 6,800; summer, 12,300. Inventory at the beginning of fall is 515 units. At the beginning of fall you currently have 30 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, $80 for each temp:layoff $160 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.) Winter Spring Summer 8,2006,800 12,300 (2,585) 10,785 21,570 13,80023,800 400 Fall 10,300 515 9,785 19,570 14,400 Forecast Beginning inventory Production required Production hours required Production hours available Overtime hours Temp workers Temp worker hours available Total hours available 14,400 14.400 14,400 7,200 (2,585) 21,570 10,785 14,400 7.200 9,600 24,000 12,000 100 Actual production 400 Ending inventory Workers hired L Total hours available Actual production Ending inventory Workers hired Workers laid off 14,400 7,200 (2,585) 21,570 10,785 14,400 7,200 400 24,000 12,000 100 0 Straight time Overtime Inventory Backorder Hiring Layoff Fall $ 72,000 0 01 25,850 Winter Spring Summer $72,000 $ 72,000 $ 120,000 57,360 0 01 2,000 500 001 0 op of 1,600 of 0 3,200 60 $ 74,000 $ 125,300 $ 426,510 or of Total $ 97,850 Annual cost