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The monthly forecasts for the product X for January, February, and March are 1 , 0 0 0 , 1 , 5 0 0 ,

The monthly forecasts for the product X for January, February, and March are 1,000,1,500, and 1,200, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 500 units. Manufacturing cost is $200 per unit, storage cost is $3 per unit per month (based on expected end-of-month levels), standard pay rate is $18 per hour, hiring and training cost is $2,000 per worker, layoff cost is $3,000 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 50 workers and that they work 8 hours per day.

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