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Page Healing Inc, constructs air conditioning and heating systems for hospitals. The expected demand and production days for the next 6 months are as follows. month Expected Production Demand/ demand days day 1000 20 55 Han leb 000 20 50 mar 300 20 33 ort 20 30 500 200 120 40 may jun 400 20 45 Cost and other required information for the company is given in the following ud Inventory carrying cost Subcontracting cost per unit Average pay rate Overtime pay tate $5 per unit per month $30 per unit so per lour (Suo per day) $15 per hour above 8 hours per day) 4 Yours pe ulli $300 per unil per month $800 per unit per month Labor-hours to produce a unit Cost of increasing daily produclion rate (hiring and raining) Cost of decreasing daily production rate (layotts) Develop an aggregale production plan matching the workforce to the production requirement [.e. a chase strategyl and compute the total cost of this plan. Assume that the firm starts with zero inventory and exact number of workers required for January production. Every worker works for 8 hours per day in regular time Writel zerolit no ending inventory or hiring/firing exasts lorthal month Write the bios numbers without commas e g. 2300 Months Demand Daly production rale Monthly production Hinng (increase in daly prod rate) Firing (decrease in daily prod ratel Jan 1000 0 Fes 1000 Mar 700 ARE 800 May 800 JUR foc 0 Total cost regular labor cos!hiting cost firing cost 120 days S10/hr4hrs/util" + $300/unit +$600/unit -S Does subcontracling increase or decrease costs? Page Healing Inc, constructs air conditioning and heating systems for hospitals. The expected demand and production days for the next 6 months are as follows. month Expected Production Demand/ demand days day 1000 20 55 Han leb 000 20 50 mar 300 20 33 ort 20 30 500 200 120 40 may jun 400 20 45 Cost and other required information for the company is given in the following ud Inventory carrying cost Subcontracting cost per unit Average pay rate Overtime pay tate $5 per unit per month $30 per unit so per lour (Suo per day) $15 per hour above 8 hours per day) 4 Yours pe ulli $300 per unil per month $800 per unit per month Labor-hours to produce a unit Cost of increasing daily produclion rate (hiring and raining) Cost of decreasing daily production rate (layotts) Develop an aggregale production plan matching the workforce to the production requirement [.e. a chase strategyl and compute the total cost of this plan. Assume that the firm starts with zero inventory and exact number of workers required for January production. Every worker works for 8 hours per day in regular time Writel zerolit no ending inventory or hiring/firing exasts lorthal month Write the bios numbers without commas e g. 2300 Months Demand Daly production rale Monthly production Hinng (increase in daly prod rate) Firing (decrease in daily prod ratel Jan 1000 0 Fes 1000 Mar 700 ARE 800 May 800 JUR foc 0 Total cost regular labor cos!hiting cost firing cost 120 days S10/hr4hrs/util" + $300/unit +$600/unit -S Does subcontracling increase or decrease costs