2. The ABC Clothing is experiencing a general increase in sales over years. The company wants to develop a production plan for the next 6 months based on the following demand forecast: The company currently has 12 workers in its factory. In order to satisfy the production requirement, the company can vary its capacity by hiring or laying off workers, running overtime production, and using subcontractors. The following assumptions are made. - Overtime is planned in integer number of hours. All workers need to work the same number of overtime hours within a month, if overtime production is planned in that month. - Inventory and backorder costs are calculated using ending inventory/backorder of each month. - Once scheduled, all workers will produce at their full potential each month. Answer the following questions. a) Develop a plan using Pure Chase strategy over six months. That is, vary the workforce level each month to meet the exact monthly production requirement by hiring or layoff. No overtime or subcontracting. (Hint: Calculate the production requirement for each month and then the number of workers needed.) b) Develop a plan using a constant workforce of 16 workers for these six months. Use subcontracting, when necessary, to eliminate backlog in every month. No overtime. (Hint: Calculate the required subcontracting quantity month by month.) 2. The ABC Clothing is experiencing a general increase in sales over years. The company wants to develop a production plan for the next 6 months based on the following demand forecast: The company currently has 12 workers in its factory. In order to satisfy the production requirement, the company can vary its capacity by hiring or laying off workers, running overtime production, and using subcontractors. The following assumptions are made. - Overtime is planned in integer number of hours. All workers need to work the same number of overtime hours within a month, if overtime production is planned in that month. - Inventory and backorder costs are calculated using ending inventory/backorder of each month. - Once scheduled, all workers will produce at their full potential each month. Answer the following questions. a) Develop a plan using Pure Chase strategy over six months. That is, vary the workforce level each month to meet the exact monthly production requirement by hiring or layoff. No overtime or subcontracting. (Hint: Calculate the production requirement for each month and then the number of workers needed.) b) Develop a plan using a constant workforce of 16 workers for these six months. Use subcontracting, when necessary, to eliminate backlog in every month. No overtime. (Hint: Calculate the required subcontracting quantity month by month.)