(Please show all work and how you got each answer) Problem 1. (Chapter 3 Aggregate Planning) Skycell, a major European cell phone manufacturer, is making production plans for the coming year. Skycell has worked with its customers (the service providers) to come up with forecasts of monthly requirements (in thousands of phones) as shown in the Table below, such as demand in Jan. is 1,000,000 units.

Table: Monthly Demand for Cell Phones in Thousands

Month	Demand
January	1,000
February	1,100
March	1,000
April	1,200
May	1,500
June	1,600
July	1,600
August	900
September	1,100
October	800
November	1,400
December	1,700

Manufacturing is primarily an assembly operation, and capacity is governed by the number of people on the production line. The plant operates for 20 days a month, eight hours each day. One person can assemble a phone every 10 minutes. Workers are paid 30 euros per hour and a 50 percent premium for overtime. The plant currently employs 1,500 workers. Component costs for each cell phone total 25 euros. Given the rapid decline in component and finished-product prices, carrying inventory from one month to the next incurs a cost of 4 euros per phone per month. Skycell currently has a no-layoff policy in place. Overtime is limited to a maximum of 20 hours per month per employee. Assume that Skycell has a starting inventory of 50,000 units and wants to end the year with the same level of inventory. Assuming no backlogs, no subcontracting, and no new hires.

Please construct an aggregate planning model. (Constructing an aggregate planning model means defining the decision variables and writing out the objective function and the constraints for the AP optimization problem. Using Excel to solve aggregate planning model is not required.)