Reconsider the Skycell data in Exercise 1. Assume that the plant has 1,250 employees and a no-layoff policy. Overtime is limited to at most 20 hours per employee per month. Also assume no subcontracting option. Skycell has a team of 50 people who are willing to work as seasonal employees. The cost of bringing them on is 800 euros per employee, and the layoff cost is 1,200 euros per employee.

• What is the optimal production, hiring, and layoff schedule?
• How does the optimal schedule change if the seasonal pool grows from 50 to 100?
• Relative to having 1,250 permanent employees and 50 seasonal, will Skycell gain significantly if it carries only 1,100 permanent employees but has 200 seasonal employees?
• Consider the case in which Skycell has 1,250 permanent employees and 50 seasonal employees. Does Skycell gain more by eliminating its no-layoff policy for its permanent employees or by increasing the seasonal employee pool from 50 to 100? Assume permanent employees can be hired or laid off at the same cost as the seasonal employees