A small high-end swimwear manufacturer needs to plan for next year. Demand for swimwear (in units) follows a seasonal pattern:

a. Determine the unit costs.

b. Determine how many units the company will be short during each quarter if only permanent workers are used during regular time.

c. Do a trade-off analysis to determine if temp workers cost less than permanent workers during overtime.
d. Find the lowest cost production plan.

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Quarter Demand Forecast 1 2,000 2 9,000 3 9,000 4 4,000 Given the following information: Permanent workforce 5 workers Overtime capacity Maximum = 50% of regular production Production rate per 750 units/quarter (perm or temp) worker Regular wage rate $15 per hour (480 hours per quarter) Overtime wage rate $22.5 per hour (only for perm) Temp hiring cost $1,500 per worker (charged to first quarter of employment) Holding cost $1.50 per unit/quarter Back-order cost $30 per unit/quarter Beginning inventory