Carrying cost						Input for Planning	Workers per day	Hours per month,	MOS/month = 50	Overtime restriction	Maximum Overtime (h)
Carrying cost	$3.00	per unit per month				Regular	Overtime	Subcontract.
Labour input	1.6	hours per unit	Cost per unit		January	9	0	0	TRUE	720.0
Regular pay rate	$10.00	per hour		$16.00		February	9	0	0	TRUE	612.0
Overtime pay rate	$13.00	per hour		$20.80		March	9	0	0	TRUE	756.0
Subcontracting cost	$22.00	per unit per month	$22.00		April	9	0	0	TRUE	720.0
Full workday hours	8	per day				May	9	0	0	TRUE	792.0
incr. daily prod. rate	$200.00	per unit for admin and training newly hired	June	9	0	0	TRUE	720.0
Decr. daily prod. rate	$400.00	per unit for admin and compensating layed off	Total		0	0
Workers in December	5			Output
Forecasting Information	Demand	Produc-tion days	Demand per day	Production per month	Inventory change	Ending inventory	Inventory cost	Labour cost	Hires and layoffs	Sub-contracting	Total cost
January	700	20	35	900	200	200	$600.00	$14,400.00		$0.00	$15,000.00
February	595	17	35	765	170	370	$1,110.00	$12,240.00	$0.00	$0.00	$13,350.00
March	735	21	35	945	210	580	$1,740.00	$15,120.00	$0.00	$0.00	$16,860.00
April	1020	20	51	900	-120	460	$1,380.00	$14,400.00	$0.00	$0.00	$15,780.00
May	1200	22	61	990	-210	250	$750.00	$15,840.00	$0.00	$0.00	$16,590.00
June	1150	20	58	900	-250	0	$0.00	$14,400.00	$0.00	$0.00	$14,400.00
Total/Average	5400	120	45	5400	0	1860	$5,580.00	$86,400.00	$0.00	$0.00	$91,980.00
Additional Restrictions	Apply in the order below and report results			Answer field task d)
1. Hiring		the company only hires full time workers
2. Overtime	50%	of full-time hours per month cannot be exceeded
3. Subcontracting	50	units per month Minimum Order Size (MOS)
4. Ending inventory	400	units maximum ending inventory capacity

a) One important change to the basic information is that in December, 5 workers were employed on a full-time basis. Because of this, the cost of hiring more workers in January needs to be added to the total cost. Enter a formula in cell J12 to calculate the cost of hiring more workers(and potentially laying workers off) in January.

b) In the answer field for task b), state whether the level strategy has produced a feasible solution. Feasible means that it meets all four restrictions.

c) Using the same formula. It currently shows the level strategy solution (9 workers employed full time every month). Find a solution with regular work time only (no overtime and no subcontracting) that meets all four restrictions and has the lowest cost of feasible regular work only solutions. Describe your solution.

Also using the same formula implement a chase strategy where the number of full-time workers per month is chosen that meets the lowest per day demand in a month and in which the gap between monthly production and monthly demand is filled by subcontracting so that the ending inventory is zero at the end of each month. Describe your solution and comment on whether the solution is feasible.

d)Using the same formula. It currently shows the level strategy solution (9 workers employed full time every month). Strictly implement a chase strategy in which the number of full-time workers per month is chosen that meets the lowest per day demand in a month and in which the gap between monthly production and monthly demand is filled by overtime production so that the ending inventory is zero at the end of each month. Describe the solution and comment on whether the solution is feasible.

Please explain with all steps.