Q$1.$ A car tire company tries to "plan ahead" in order to effectively address the seasonal variation appearing in the

annual demand of its products. A planning horizon of $6$ months is used. The $($aggregate$)$ demand forecast for the next

six months along the number of working days are as follows:

The costs for the organization are as follows:

Manufacturing cost$/$unit : Rs$\mathrm{.}100$

Inventory holding costa : Rs$.5$

Hours available$/$day : $8$

Overtime labour cost$/$hour : Rs$.20$

Subcontracting cost$/$unit : Rs$\mathrm{.}120$

Labour hours$/$unit : $4$ hours

Layoff cost$/$worker : Rs$\mathrm{.}1500$

Hiring and training cost$/$worker : Rs$\mathrm{.}1000$

Current Inventory : $400$

Current Labour : $38$

Analyze the following aggregate plans plan and calculate the total cost

a$)$ Perform chase strategy through regular labor, by varying the workforce size.

b$)$ Adjust the workforce so that the minimal monthly demand is met through regular labor. Subcontract all excess

demand.