Given the following costs and demand forecasts, test these three strategies for meeting demand: Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Demand (000units) 2 2.5 2.5 2.5 4 0.8 1 1 4 4.5 3.2 3 Inventory holding cost $31 per unit per month Hiring cost $2,000 per worker Layoff (firing) cost $3,000 per worker Regular production cost $40 per unit Overtime cost $60 per unit Cost of subcontracting $70 per unit (Beginning) No. of regular workers 25 Workers Regular production rate 100 Units per worker per month Beginning Inventory 0 Units Ending Inventory Overtime capacity 50% Regular production rate Subcontracting capacity unlimited Units Create an aggregate production plan for each strategy and identify its cost by using: a. Level production [constant workforce level] with overtime and subcontracting, as needed (10 points) b. Chase demand [no overtime, no subcontracting] (05 points) c. Steady workforce of 20 workers and supplementing with overtime, subcontracting (10 points)

Question 4 (25 points). Given the following costs and demand forecasts, test these three strategies for meeting demand: Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Demand 2 2.5 2.5 2.5 4 0.8 1 1 4 4.5 3.2 3 ("000units) Inventory holding cost $31 per unit per month Hiring cost $2,000 per worker Layoff (firing) cost $3,000 per worker Regular production cost $40 per unit Overtime cost $60 per unit Cost of subcontracting $70 per unit (Beginning) No. of regular workers 25 Workers Regular production rate 100 Units per worker per month Beginning Inventory 0 Units Ending Inventory Overtime capacity 50% Regular production rate Subcontracting capacity unlimited Units Create an aggregate production plan for each strategy and identify its cost by using: a. Level production constant workforce level] with overtime and subcontracting, as needed (10 points) b. Chase demand [no overtime, no subcontracting] (05 points) C. Steady workforce of 20 workers and supplementing with overtime, subcontracting (10 points) Question 4 (25 points). Given the following costs and demand forecasts, test these three strategies for meeting demand: Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Demand 2 2.5 2.5 2.5 4 0.8 1 1 4 4.5 3.2 3 ("000units) Inventory holding cost $31 per unit per month Hiring cost $2,000 per worker Layoff (firing) cost $3,000 per worker Regular production cost $40 per unit Overtime cost $60 per unit Cost of subcontracting $70 per unit (Beginning) No. of regular workers 25 Workers Regular production rate 100 Units per worker per month Beginning Inventory 0 Units Ending Inventory Overtime capacity 50% Regular production rate Subcontracting capacity unlimited Units Create an aggregate production plan for each strategy and identify its cost by using: a. Level production constant workforce level] with overtime and subcontracting, as needed (10 points) b. Chase demand [no overtime, no subcontracting] (05 points) C. Steady workforce of 20 workers and supplementing with overtime, subcontracting (10 points)