Figure 1 Hiring Cost: RM200 per worker Layoff Cost: RM350 per worker Regular Pay: RM1050 per...

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Figure 1 Hiring Cost: RM200 per worker Layoff Cost: RM350 per worker Regular Pay: RM1050 per worker per month Overtime pays: 1.2 times of regular pay Sub-Contract: RM150 per unit Normal Production Cost: RM50 per unit (excluding worker salary) Inventory carrying cost: RM100 per unit (based on end of month balances) Backorder cost: RM205 per unit (based on end of month shortage) Productivity: 78 units per worker per month Normal working days: 26 per month (8 hours/day, including 1-hour breaktime) Beginning workforce size: 9 workers (available at the beginning of January: Worker hiring, and layoff are not allowed in Jan, June, and November) Beginning Inventory: 24 units (Starts in January) Table 1 shows the demand forecasts of product A for the period of twelve months in year 2022. Develop the production plans by comparing the chase, level and mixed strategies using related information given in Figure 1. Discuss the results, propose the best production plan and suggest any related improvement (e.g. cost saving strategies, etc) to maximize the effectiveness of the production plan towards its implementation. Month Demand Forecast of year 2022 Table 1 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 127 165 252 110 250 210 333 400 210 110 250 310 Figure 1 Hiring Cost: RM200 per worker Layoff Cost: RM350 per worker Regular Pay: RM1050 per worker per month Overtime pays: 1.2 times of regular pay Sub-Contract: RM150 per unit Normal Production Cost: RM50 per unit (excluding worker salary) Inventory carrying cost: RM100 per unit (based on end of month balances) Backorder cost: RM205 per unit (based on end of month shortage) Productivity: 78 units per worker per month Normal working days: 26 per month (8 hours/day, including 1-hour breaktime) Beginning workforce size: 9 workers (available at the beginning of January: Worker hiring, and layoff are not allowed in Jan, June, and November) Beginning Inventory: 24 units (Starts in January) Table 1 shows the demand forecasts of product A for the period of twelve months in year 2022. Develop the production plans by comparing the chase, level and mixed strategies using related information given in Figure 1. Discuss the results, propose the best production plan and suggest any related improvement (e.g. cost saving strategies, etc) to maximize the effectiveness of the production plan towards its implementation. Month Demand Forecast of year 2022 Table 1 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 127 165 252 110 250 210 333 400 210 110 250 310