This is an aggregate planning problem for which manual computations must be shown for 2 questions. Here are the problem details:

A firm has forecasted quasi-unit sales of 5,000 over the next six (6) months, during which time, 125 production days are available.

Each worker can produce eight (8) units per day and is paid $150.00 per day.

Inventory carry costs are $7.00 per unit per month.

Inventory stockout costs are $10.00 per unit per month.

In addition, the firm's monthly production days and demand forecasts are as follows:

July: 18 Production Days; 675 Demand Forecast

August: 24 Production Days; 725 Demand Forecast

September: 21 Production Days; 825 Demand Forecast

October: 21 Production Days; 875 Demand ForecaProbst

November: 21 Production Days; 925 Demand Forecast

December: 20 Production Days; 975 Demand Forecast

Problems to be Solved:

1. Utilizing a constant labor force over the six month planning period, that is, an inventory cushion strategy, compute total labor force costs and inventory carrying costs.

2. Indicate in which month an inventory stockout occurs and compute its total cost (if any).

Your help in answering these questions is greatly appreciated; as noted, I need the manual computations to support the answers. Thank you.