LAB EXERCISE Form groups of two students to work on the following problem: 1. The production planner of an organization, projects the firm's aggregate demand requirements over the next 8 months are as follows: January 1400 May 2200 February 1600 June 2200 1800 March 1800 July April 1800 August 1600 His operations managers, a group of manufacturing and industrial engineering technology students are considering a new plan, which begins in January with 200 units on hand and ends with 200 units of inventory. There are 20 production days available each month. The following information also applies: Inventory carrying cost Subcontracting cost per unit Average per rate Overtime per rate $5 per unit/month $20/unit $15/hour ($120/day) $25/hour (above 8 hours day) Labor hours to produce a unit Cost of increasing daily production rate (hiring and training) 0.5 hours per unit $50/unit Cost of decreasing daily production rate $75/unit (layoffs) Develop a excel spreadsheet (see D2L) for costing: a) a level strategy with no overtime and subcontracting (Part 1); b) a mixed strategy with a level workforce set in accordance with the lowest demand month with overtime and subcontracting as required. Overtime is limited to 200 units/month (Part 2)