Input:	Beg. Wkrs	22	Regular	$40	Hiring	$2,500
	Unit/wkr	100	Overtime	$60	Firing	$3,000
	Beg. Inv.	0	Subk	$75	Inventory	$7
Month	Demand	Reg	OT	Subk	Inv	#Wkrs	#Hired	#Fired
Apr	1300
May	1100
Jun	700
Jul	500
Aug	500
Sep	1000
Oct	1200
Nov	1200
Dec	5000
Jan	5600
Feb	7600
Mar	4300
Total	30000

BlueFans is a small company that manufactures fans. Large variations in demand due to seasonality have contributed to high costs for the company. BlueFans 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.

What is the cost of the current production plan? Justify your answer.

How much would BlueFans save (difference between the cost in a and the cost in b) by using a chase demand strategy? Justify your answer.

How much would BlueFans save (difference between the cost in a and the cost in c) by keeping a steady workforce of 20 workers and supplementing with over-time and subcontracting as needed.