Given the demand, cost, and operating data shown below evaluate the following production plans:

Manufacturing cost per unit $100

Subcontracting cost per unit $150

Regular hourly wage rate $12

Overtime hourly wage rate $18

Regular hours per day per worker 8

Labor hours per unit 4

Layoff cost per worker $500

Hiring cost per worker $400

Inventory holding cost per unit per month $2

Initial workforce 250

Initial Inventory 0

Month	Demand	Working days
January	11,000	22
February	15,000	19
March	32,000	21
April	25,000	21
May	30,000	22
June	14,500	20

b) Produce with a fixed workforce of 500 employees. Subcontract excess demand (Mixed Strategy).

Month	Demand	Hours Avail. per Worker	Production per month	Inventory	Subcontracted
Jan.	11,000
Feb.	15,000
March	32,000
April	25,000
May	30,000
June	14,500
Sum	127,500

Total Cost =