The owner of a small mill-working plant that builds cabinets is developing his aggregate plan for the next year. The relevant cost data and forecast for the next 4 quarters is provided below. The company currently has 20 employees and works one 8 hour shift each day with 2 paid 15 minute breaks. Assume each quarter has 63 working days, and that it currently has no units in stock. Use this information and the information from the table to answer the questions below.
Costs			Forecast		Other Data
Holding Cost/Unit/Quarter		$45.00	Qtr 1	2100	Labor Hours/Unit			3.75
Hiring Cost		$3,500.00	Qtr 2	3200	Beginning Inventory			0
Layoff Cost		$5,000.00	Qtr 3	4100
Subcontract Cost		$115.00	Qtr 4	3650
Avg. Labor Cost/Hour		$17.50
Overtime Labor Cost/Hour		$26.25
Part I
1) If the company used a chase demand startegy and rounded any fractional number of employees to the nearest whole number, how many employees would be used in each quarter?
2) If the company used a level capacity strategy and rounded any fractional number of employees to the nearest whole number, how many employees would be used?
Period	1	2	3	4
Forecast	2100	3200	4100	3650
Hours Req.
Workers Req.
Part II
Assume the company wants to use a Level Capacity Strategy with 24 employees (Round the Production in each period to the nearest whole number). In any period where on-hand inventory and production do not meet demand the company would supplement with overtime production. Use the table below to calculate the total costs associated with using this plan.
Q3) What would the overtime production cost be for this plan?
Q3) What would theTotal Cost be for this plan?
Level Capacity Aggregate Plan
Period	1	2	3	4
Forecast	2100	3200	4100	3650
Workers Used
Hire/(Fire)
Production
Production - Forecast
Inventory:
B.I.
E.I.
Average
Overtime Production
Hiring Cost
Firing Cost
Reg. Output
O.T.
Subcontract
Inventory
Backorder
Total Cost:
Total Cost For Plan