Inventory holding cost is $5/unit/month. (Holding cost is based on ending inventories.)

Hiring cost is $2,000/employee.

Firing cost is $500/employee.

Straight-time cost of a permanent employee is $2,000/worker/month.

Overtime cost is 1.5 straight time. (Overtime is available in increments of worker-months.)

Each worker can produce 100 units per month on straight time.

The present permanent workforce is 100 employees.

Temporary workers can be used at a straight time cost of $2,750 per month with no hiring or

firing cost. However, each temporary worker must stay for a MINIMUM

ENGAGEMENT of at least two months. Temporary workers have the same productivity

as permanent workers.

Beginning inventory, at the beginning of January, is 0 units.

a. Find the least-cost level aggregate production plan with a constant workforce. For this

plan:

(i) Find the ending inventory in June.

(ii) Find the total cost of this aggregate production plan.

b. Find the least-cost chase aggregate production plan. Production may be varied by

changing the size of the permanent workforce, using overtime, or using temporary workers.

For this plan:

(i) Find the ending inventory in June.

(ii) Find the total cost of this aggregate p

The forecast demand for an item is: January 8,000 February 10,000 March 16,000 April 6,000 May 14,000 June 12.000 Shipment Forecast Inventory holding cost is $5/unit/month. (Holding cost is based on ending inventories.) Hiring cost is $2,000/employee. Firing cost is $500/employee. Straight-time cost of a permanent employee is $2,000/worker/month. Overtime cost is 1.5 x straight time. (Overtime is available in increments of worker-months.) Each worker can produce 100 units per month on straight time. The present permanent workforce is 100 employees. Temporary workers can be used at a straight time cost of $2,750 per month with no hiring or firing cost. However, each temporary worker must stay for a MINIMUM ENGAGEMENT of at least two months. Temporary workers have the same productivity as permanent workers. Beginning inventory, at the beginning of January, is 0 units. a. Find the least-cost "level" aggregate production plan with a constant workforce. For this plan: (i) Find the ending inventory in June. (ii) Find the total cost of this aggregate production plan. b. Find the least-cost "chase" aggregate production plan. Production may be varied by changing the size of the permanent workforce, using overtime, or using temporary workers. For this plan: (i) Find the ending inventory in June. (ii) Find the total cost of this aggregate production plan. The forecast demand for an item is: January 8,000 February 10,000 March 16,000 April 6,000 May 14,000 June 12.000 Shipment Forecast Inventory holding cost is $5/unit/month. (Holding cost is based on ending inventories.) Hiring cost is $2,000/employee. Firing cost is $500/employee. Straight-time cost of a permanent employee is $2,000/worker/month. Overtime cost is 1.5 x straight time. (Overtime is available in increments of worker-months.) Each worker can produce 100 units per month on straight time. The present permanent workforce is 100 employees. Temporary workers can be used at a straight time cost of $2,750 per month with no hiring or firing cost. However, each temporary worker must stay for a MINIMUM ENGAGEMENT of at least two months. Temporary workers have the same productivity as permanent workers. Beginning inventory, at the beginning of January, is 0 units. a. Find the least-cost "level" aggregate production plan with a constant workforce. For this plan: (i) Find the ending inventory in June. (ii) Find the total cost of this aggregate production plan. b. Find the least-cost "chase" aggregate production plan. Production may be varied by changing the size of the permanent workforce, using overtime, or using temporary workers. For this plan: (i) Find the ending inventory in June. (ii) Find the total cost of this aggregate production plan