A local semkconductor firm, Superchip is planning its workforce and production levels over the next year. The firm makes a veriety of microprocessors and uses sales dollars as its aggregate production measure. Based on orders received and sales forecasts provided by the marketing department, the estimate of dollar sales for the next year by month is as follows:

Inventory holding costs are based on a 25 percent annual interest charge. It is anticipated that there will be 675 workers on the payroll at the end of the current year and inventories will amount to 5120,000. The firm would like to have at least 5100,000 of inventory at the end of December next year. It is estimated that each worker accounts for an average of 560,000 of production per year (assume that one year consists of 250 working days). The cost of hiring a new worker is 5200. and the cost of laying off a worker is 5400.
a Determine the minimum constant workforce that will meet the predicted demand for the coming year.
b. Evaluate the cost of the plan determined in part (a).

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Production DaysPredicted Demand (In $10,000) 340 380 220 100 550 625 375 310 175 145 負Xi February 16 21 19 23 20 24 12 September 19 April une July November 16