This is an Integrated Production System question! Please answer STEP BY STEP ( NO EXCEL PLEASE)

1. Today is the last day of January, and a backpack company is planning its

production and workforce levels for the next four months. Backpack sales are seasonal and

the sales forecasts are as follows:

Month. Production days Demand forecast

February 20 12200

March 23 17600

April 22 14000

May 20 6300

Currently, the company has 86 workers on the payroll. Historical records show that during a

period of 26 working days when there were 100 workers on the payroll, the company

produced 12,000 backpacks. The cost to hire a new worker is $125 and the cost of firing a

worker is $300. Holding costs are $0.75 per case per month. Currently, there are 4500

backpacks in stock and in each month the company desires to hold an extra 1000 backpacks

each month as a buffer. It would also like to start May with 3000 backpacks on hand.

Find the zero inventory plan (apart from the 1000 backpacks reserved in each month) for

the company over the next four months. Suppose no stock-out is allowed and inventory can

be carried to future periods to satisfy demands in those periods.