FansForYou is a small, privately owned company that manufactures the fans for the air circulation systems in the Tesla cars. Their demand follows Tesla's monthly variations in demand, which contribute to high costs for the company. FansForYou currently uses a level production strategy because it prefers not to hire and fire employees. However, if there is enough cost justification, the company will consider alternative production plans.

Beginning inventory	0
Beginning workforce	25 workers
Production rate	100 fans per worker per month
Regular production cost	$40 per fan
Overtime production cost	$60 per fan
Subcontracting cost	$70 per fan
Overtime capacity	Not to exceed regular production
Subcontracting capacity	Unlimited
Holding cost	$8 per fan
Hiring cost	$2000
Firing cost	$3000

Table 6. Sales and Operational Planning Data

1. Using the monthly demand you developed in Problem 5, calculate the cost of the current level strategy production plan.

1. How much would FansForYou save by using a chase demand strategy?

1. How much would FansForYou save by keeping a steady workforce of 20 workers and supplementing with overtime and subcontracting as needed?

1. Design a production plan for FansForYou using linear programming and Excel Solver.