The enterprise HALO is doing it's... S&OP planning using the level strategy for the following year. The mketing dept made the following forecast for HALO’s very popular model “YW”.

Quarter 1 20000.....

Quarter 2 18000....

Quarter 3. 15000......

Quarter 4 3000.......

The following cost info is given:

• The cost of hiring a person is $400
• The cost per person of laying off is $1500
• Inventory backordercost - $25 per unit per quarter "based on the back ordered quantity"
• Inventory holding cost - $20 unit per quarter "based on the average inventory during the quarter"
• The productivity of 1 worker per quarter is 500 units/quarter
• The beginning inventory in quarter 1 is 0 units.
• The company wants to keep at least 2000 units by the end of quarter 4.
• The company have 30 full-time workers at the beginning of the year.

Using the level strategy, answer all these questions. 

1. How many full-time workers does the company need throughout the year to accommodate the level strategy?
2. According to your level S&OP, what is the beginning inventory in Quarter 2?
3. According to your level S&OP, what is the average inventory in Quarter 2?
4. According to your level S&OP, what is the backorder (i.e. backlogging) amount in Quarter 3?
5. According to your level S&OP, how many additional full-time workers do you need to hire at the beginning of Quarter 1?
6. According to your level S&OP, how many full-time workers do you need to lay off at the beginning of Quarter 1?
7. According to your level S&OP, what is your total inventory cost for this year?
8. According to your level S&OP, what is your total backorder (i.e. backlogging) cost for this year?
9. According to your level S&OP, what is your total HR cost for this year?