Use the following data to solve the first seven problems.
Problem Data
Cost data
Regular-time labor cost per hour	$17.00
Overtime labor cost per hour	$21.00
Subcontracting cost per unit (labor only)	$80.00
Holding cost per unit per period	$13.00
Back-order cost per unit per period	$20.00
Hiring cost per employee	$550.00
Firing cost per employee	$400.00
Capacity data
Beginning workforce	300 employees
Beginning inventory	600 units
Labor standard per unit	8 hours
Regular time available per period	200 hours
Overtime available per period	35 hours
Subcontracting maximum per period	1200 units
Subcontracting minimum per period	600 units
Demand data
Period 1	6000 units
Period 2	5000 units
Period 3	8000 units
Period 4	6000 units
Period 5	7000 units
Period 6	5000 units

2. Sally has decided that the Purse Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. You must:
   1. Calculate the aggregate production rate.
   2. Calculate the appropriate workforce given the aggregate production rate.
   3. Show what would happen if this plan were implemented.
   4. Calculate the costs of this plan.
   5. Evaluate the plan in terms of cost, customer service, operations, and human resources.