Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall.

10000: winter, 8000; spring 7000; summer, 12000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if the overtime is necessary to prevent stock-outs at the end of those quarters. Overtime is not available during fall.

Relevant costs are: hiring, $100 for each temp: layoff; $200 for cach worker laid off; inventory holding. $5 per unit-quarter: backorder. $10 per unit: straight time. $5 per hour; overtime $8 per hour. Assume that the productivity is 0.5 units per worker hour, with eight hours per day and 60 days per season.

Develop a production plan using (a) Chase strategy, no overtime. work hours not flexible (15 points)

(b) Chase strategy, no overtime. flexible hours (15 points) (c) Assuming that the shortages are allowed and that 6 new workers will be hired in the beginning of the fall term develop a production plan using level strategy and no overtime.