overtime can be worked up to 100 units/person

12. 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. Input: Beg. Wkrs Units/wkr Beg. Inv. 22 100 0 Regular Overtime Subk $40 Hiring $60 Firing $75 Inventory $2,500 $3,000 $7 Reg OT Subk Inv #Wkrs #Hired #Fired Month Demand Apr 1300 May 1100 Jun 700 Jul 500 Aug 500 1000 Oct 1200 Nov 1200 Dec 5000 5600 Feb 7600 Mar 4300 Total 30,000 Sep Jan a. What is the cost of the current production plan? Justify your answer. b. 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. c. 12. 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. Input: Beg. Wkrs Units/wkr Beg. Inv. 22 100 0 Regular Overtime Subk $40 Hiring $60 Firing $75 Inventory $2,500 $3,000 $7 Reg OT Subk Inv #Wkrs #Hired #Fired Month Demand Apr 1300 May 1100 Jun 700 Jul 500 Aug 500 1000 Oct 1200 Nov 1200 Dec 5000 5600 Feb 7600 Mar 4300 Total 30,000 Sep Jan a. What is the cost of the current production plan? Justify your answer. b. 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. c