KSK Company produces backpacks The company 's operations manager, Mehmet Akbalck, would like to try alternative batch production plans using the data below Costs Labor cost ($ hour) $12 00 Contract cost ($ piece) $90 00 Retention cost ($ unit month) $10 00 Hiring cost ($ worker) $500 00 Layoff cost...

KSK Company produces backpacks. The company's operations manager, Mehmet Akbalck, would like to try alternative batch production

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KSK Company produces backpacks. The company's operations manager, Mehmet Akbalcık, would like to try alternative batch production plans using the data below.

Costs
Labor cost ($/hour)	$12.00
Contract cost ($/piece)	$90.00
Retention cost ($/unit-month)	$10.00
Hiring cost ($/worker)	$500.00
Layoff cost ($/employee)	$600.00

Capacity data
Current number of workers	200 workers
Initial inventory (early January)	300 pieces
Labor hours required for a product (product/hour)	5 hours
Monthly working hours (employees/month)	160 hours

Demand forecasts (units)
January	4800
February	5200
March	8500
April	6500
May	4500
June	6200

In the light of these data, apply the following 2 alternative plans by creating tables. Indicate which plan should be preferred.

a) Adjusting the labor level each month to produce to meet net demand (Demand monitoring strategy). Contract manufacturing will not be used in this plan.

b) Production to meet net demand with the current workforce level (constant production rate strategy). In this plan, in case KSK's own production amount is insufficient to meet the demand, contract manufacturing will be used for the missing amount.