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lumber products market. Hiring and training costs in Chile were $1,000 per new employee. Layoff costs were $500 per employee. Exhibit 2 summarizes the
lumber products market. Hiring and training costs in Chile were $1,000 per new employee. Layoff costs were $500 per employee. Exhibit 2 summarizes the various cost factors. Exhibit 1 MONTHLY DEMAND FORECAST (000 BOARD FEET) Month Demand (000) Jan. 1,000 Feb. 1,100 Mar. 1,300 Apr. 1,500 May 1,800 Jun. 2,200 Jul. 2,500 Aug. 2,400 Sep. 2,000 Oct. 1,600 Nov. 1,200 Dec. 800 Exhibit 2 COST SUMMARY (PER 1000 BOARD FEET) Cost Factor Regular Time Overtime Holding Shipping U.S. Spot Market Cost ($) 150 200 25 50 400 (a) Determine the workforce and production schedule based on a level strategy, a chase strategy and a mixed strategy that meet the forecasted demand at minimum total cost?
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