Question: H&C Inc. is preparing an aggregate production plan for next year. The company will have 250 units in inventory at the beginning of the year

H&C Inc. is preparing an aggregate production

H&C Inc. is preparing an aggregate production plan for next year. The company will have 250 units in inventory at the beginning of the year and desires to maintain at least that number at the end of each quarter as safety stock. Regular production labor cost = $220 per unit Overtime production cost per unit = $330 Inventory carrying cost = $20/unit/quarter based on quarter-ending inventory Hiring cost = $6,500 per worker Firing/layoff cost = $8,000 per worker Beginning number of workers = 25 Each worker can produce 100 units per quarter. Suppose H&C's management does not want to keep changing the workforce. H&C decides to hire ten additional workers at the beginning of the year and maintains that workforce. If necessary, overtime will be used to meet demand requirements if there is not sufficient inventory available. Quarter Regular Demand Overtime Production Ending Inventory Fire Workers Hire Required 35 10 1 3300 2 4300 3 6300 4 5300 What is the total overtime production

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