A company has the following demand forecast for the next 6 months. Assume that an employee contributes eight regular working hours per day. Overtime capacity is limited to a maximum of 20% of regular time capacity. The time to produce one unit is 4 h.

Month Forecast Working Days January 540 21 February 640 20 March 580 22 April 520 19 May 530 20 June 590 18

a. What is the average production level per day during the 6-month period?

b. If the demand for March (580 units) are produced during regular time in March (22 days), how many workers will you need?

c. Suppose the number of workers is 14 in each month. Each worker produces to the maximum capacity during regular time. How many units can be produced in April during regular time?

d. The management specifies the following policy: Use a level production, that is, the same number of workers is used in each month. No inventories or shortages are allowed. Overtime and/or subcontracting may be used in any month if needed. What level production per day will you use?