11) Land's End is a mail and phone order company for clothes. Like other retailers, its sales

surge close to Christmas. The full-time equivalent (FTE) employee requirements for

October to December of last year were as follows: October: 4,000 FTE, November: 6,000

FTE, and December: 7,100 FTE. Land's End employs 4,000 FTE throughout the year

(3,500 full time and 1,000 half-time). During November and December, Land's End can

employ up to 1,500 additional FTE part-time and temporary workers (high school

students and idle workers from a local cheese factory). Also, Land's End can use up to

2,000 FTE of overtime work (hours worked beyond an eight-hour shift in a day). Each

FTE permanent employee receives $3,000 a month. Each FTE of overtime work receives

$4,500 a month. Each Temporary FTE of part-time and temporary workers receives

$3,000 a month, but needs an average of $1,000 training) charged to the first month of

employment).

a) Set up this problem as an aggregate planning problem and determine the minimum cost

plan.

b) Briefly state the trade-off analysis you used.

c) What factors, other than cost, should be considered in this plain? Explain.