Question: Use a mixed method strategy; Jan June, use level production with OT and S/K not more than a worker and BKO as needed. While July

Use a mixed method strategy; Jan June, use level production with OT and S/K not more than a worker and BKO as needed. While July October, use chase production and workers as needed.

Jan	Feb	March	Apr	May	June	July	Aug	Sept	Oct
4000	8000	6000	2000	7000	3000	5000	6000	8000	11000

Current work force 10 workers

Production per worker 500 units per month

Inventory holding cost $0.30 per unit

Regular wage rate $20.00

Overtime wage rate $30.00

Sub-contracting wage rate $40.00

Backordering (BKO) $50.00

Hiring cost $1500 per worker

Firing cost $3000 per worker

Beginning inventory 1000 units

Mth	Demand	Regular Production	Over Time	S/K	Inventory	BKO	Workers	H	F
Jan	4000
Feb	8000
Mar	6000
Apr	2000
May	7000
June	3000
July	5000
Aug	6000
Sept	8000
Oct	11000
Total	60,000

Calculate the cost:

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