Masters Gadgets Company (MGC) produces power supply units for the gamer desktop computers. You (production planner) are assigned the job of developing an aggregate production plan for the six months from January through June. Using the following data, prepare the aggregate production plans for the next two scenarios independently. Month Expected Demand (units) January 1475 February 1145 March April May June 972 1903 996 1252 The following planning parameters apply: Planning Parameters Current number of workers Labor hours Required Regular time labour cost Overtime labour cost Maximum overtime hours allowed Hiring cost (including training) Layoff cost Inventory carrying cost Backorder cost Opening inventory Planned ending inventory (end of month 6) Number of regular time hours Number of working days Cost of Subcontracting Material Cost 46 8 hours/unit $14.00/hour $21.00/hour 15.00% of regular labour-hours/month $935 /worker $1,315/worker $4.10/unit/month $13.00/unit backordered 80 units 125 units 8 hours/day 22 days/month $142 per unit $20 per unit a) Produce to meet expected demand over the next six months by maintaining a constant workforce (level strategy). No overtime and subcontracting are allowed. What is the total cost if this strategy is applied? b) Use constant 40 workers during each month. No ending inventory or backorders are allowed except for the planned ending inventory for the last month. Determine the amount of regular, overtime, and subcontract production. Subcontracting is only allowed if demand is not met using the regular time and maximum overtime production. What is the total cost if this strategy is applied?