January	February	March	April	May	June	July	August	September	October	November	December		Cost Parameters
Demand	1000	1100	1300	1500	1800	2200	2500	2400	2000	1600	1200	800		Production Cost in Chile Regular Time	$150 per 1000 board feet
														Production Cost in Chile Overtime	$200 per 1000 board feet
Production decision (1000 board ft														Production Cost in the US	$400 per 1000 board feet
Regular	1000	1100	1300	1500	1500	1500	1500	1500	1500	1500	1200	800		Transportation cost from Chile	$50 per 1000 board feet
Overtime	0	0	0	0	0	0	0	0	0	0	0	0		Hiring/training cost in Chile	$1,000 per new employeed
Local - US	0	0	0	0	300	700	1000	900	500	100	0	0		Layoff cost in Chile	$500 per employee
Total	1000	1100	1300	1500	1800	2200	2500	2400	2000	1600	1200	800		Holding Cost	$25 per 1000 board feet
														Shipping Cost	$50 per 1000 board feet
Ending Inventory	0	0	0	0	0	0	0	0	0	0	0	0
														Capacity Parameters
Chile Capacity decision (1000 board ft.)														Max Shipping Capacity	1500 - 1000 board feet per month
Existing Employees	20	20	22	26	30	30	30	30	30	30	30	24		Lead Time	1 month
Hire	0	2	4	4	0	0	0	0	0	0	0	0		Product Rate in Chile	50 - 1000 board feet per employee
Layoff	0	0	0	0	0	0	0	0	0	0	0	6		Labor Capacity - Regular Time	160 hours per month per employee
Net Employees	20	22	26	30	30	30	30	30	30	30	30	24		# of employees in Chile	20
Regular Capacity	1000	1100	1300	1500	1500	1500	1500	1500	1500	1500	1200	800		Max inventory capacity	3000 - 1000 board feet per month
Overtime Capacity	250	275	325	375	375	375	375	375	375	375	200	200		Overtime Capacity	25% of regular hours
														Backorder - Demand has to be met	none
Costs
Regular Production	$150,000	$165,000	$195,000	$225,000	$225,000	$225,000	$225,000	$225,000	$225,000	$225,000	$180,000	$120,000
Overtime Production	0	0	0	0	0	0	0	0	0	0	0	0
Shipping cost	$50,000	$55,000	$65,000	$75,000	$75,000	$75,000	$75,000	$75,000	$75,000	$75,000	$60,000	$40,000
Local - US Production	0	0	0	0	$120,000	$280,000	$400,000	$360,000	$200,000	$40,000	0	0
Inventory	0	0	0	0	0	0	0	0	0	0	0	0
Hiring/Layoff	0	$2,000	$4,000	$4,000	0	0	0	0	0	0	$3,000	$4,000
Total Costs	$200,000	$222,000	$264,000	$304,000	$420,000	$580,000	$700,000	$660,000	$500,000	$340,000	$243,000	$164,000
													Overall Chase Strategy Cost: $4,597,000

Question 1 - Develop a Chase strategy in which all production occurs in the US and compare how much the company is better-off by making all production in Chile.