Question: Lifetime has collected demand forecasts for its kayaks in Table 2. They would like to compare the total cost of two plans: 1) A chase

Lifetime has collected demand forecasts for its kayaks in Table 2. They would like to compare the total cost of two plans: 1) A chase strategy using hires/layoffs with no inventory and backorders; and 2) A Level strategy using inventory and backorders. To help with the comparison, they have obtained other relevant costs and production information in Table 1. They will start the planning horizon with 0 units in initial inventory. Assume all backorders accumulate.

Table 1
Parameter Value
Previous Month's (Month 0) Production in units 1400
Production cost per unit $190
Hiring cost per unit $50
Layoff cost per unit $90
Cost of holding inventory per unit per month $50
Cost of a backorder per unit per month $90

Table 2
Month Demand
1 800
2 1600
3 3100
4 4600
5 4000
6 2500

Compute the total units of layoffs for the Chase Strategy using hires and layoffs.

Enter your final answer rounded to the nearest tenth of a dollar.

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