Example: DensePack - Plan the workforce and production levels for January-June - Currently (end of December) 300 workers are employed - Ending inventory in December: 500 units - The firm would like to have 600 units at the end of June - No backlogging, no overtime - Forecast demand: - cH : cost of hiring one worker: $500 - CF : cost of firing one worker: $1000 - cI : cost of holding one unit of inventory for one month: $80 - (incurred at the end of each period) - Pa=0.14653 : num. aggregate units produced by one worker per day