Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below.

They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below.

a) Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this plan?

b) If management at Deforrest Marine Motors is interested in a chase strategy using a hire/fire option, what is the total cost of this plan? They plan on using a policy where if the need were for 21.2 workers, they would hire 22 workers for that quarter. (Hint: this will impact regular time production and inventory.)

c) If management at Deforrest Marine Motors is interested in a level strategy with their current employees using overtime and subcontracting when demand cannot be balanced with inventory, what is the total cost of this plan?

\begin{tabular}{|c|c|c|c|c|} & \multicolumn{1}{c}{ Q1 } & Q2 & \multicolumn{1}{c}{ Q3 } & Q4 \\ \cline { 2 - 5 } Demand & 2,400 & 2,200 & 1,700 & 1,800 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Employees & \multicolumn{1}{|c|}{30} & Hire Cost & $1,200/ employee \\ \hline Production Rate & 70 units/employee/quarter & Fire Cost & $800/ employee \\ \hline Production Cost & $1,000/ unit & Subcontracting Cost & $1,800/ unit \\ \hline Backorder Cost & $200/ unit/quarter & Subcontracting Limit & 400 units maximum \\ \hline Overtime Cost & $1,500/ unit & Inventory Cost & $100/ unit/quarter \\ \hline Overtime Limit &